Understanding Prop 60 & 90
Proposition 60 & 90essentially have the same provisions and qualifications, however Prop 60 applies intra-county, which means the transfer is within the same county, whereas, Prop 90 is inter-county and applies to transfers from one county to another county in California, if the county where the replacement property is located has enacted Proposition 90 to authorize such transfer. According to the Board of Equalization, as of Nov. 7, 2018, ten California counties that have adopted Proposition 90.
- Age – The claimant or a spouse residing with claimant, must be at least 55 years old when the original property is sold.
- One-time benefit – The is a one-time benefit. If Prop 60 or Prop 90 relief was filed and received, neither claimant nor spouse are eligible for filing again.
- Primary Residence or Disabled Veterans’ Exemption – The original property must have been eligible for the Homeowners’ Exemption (i.e. was the primary residence) or the Disabled Veterans’ Exemption at them time it was sold or within 2 years of the purchase or construction of replacement property.
- Reappraisal of Original Property – The original property must be subject to reappraisal at its current fair market value as the result of its transfer.
- Principal Resident of Replacement Property – The replacement property must be the claimants’ principal residence and must be eligible for Homeowners’ Exemption or the Disabled Veterans’ Exemption.
- Value – The replacement dwelling must be of equal or lesser value than the original property.
- Time – the replacement dwelling must be purchased or newly constructed within two years (before or after) of the sale of the original property.
- Filing Claim – A claim for retroactive relief in must be filed within three years of the purchase date of the replacement property or the new construction completion date of the replacement property.
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Lynne Watanabe – MacFarlane, MCDM, Realtor
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