Sell Your Home and Keep Your Property Tax Base
How to buy and sell a home
and keep paying the same Property Tax in California
you an empty nester looking to downsize but hesitant to sell because of
a higher tax rate on the new property? If the answer is yes, you might
want to know about Proposition 60.
Under Proposition 60, California homeowners,
55 and older, get a one-time chance to sell their primary residence and
transfer its property-tax assessment to a new home under one condition:
The market value of the new home must be equal to or less than the
value of the old home. This condition should be easy to fulfill
considering the increase in value of residential properties over time in
Under Proposition 13, homes are reassessed
for property-tax purposes when there is a change in ownership or new
construction. In-between ownership changes, the assessed value can go up
by an inflation rate not to exceed 2% a year. Proposition 60 let
homeowners 55 or older transfer their base-year value from an existing
primary residence to a new primary residence, but there are
The new home
must be in the same county as the old one or, as Proposition 90
specified it, in one of the following eleven counties: Alameda, El
Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San
Mateo, Santa Clara, Tuolumne and Ventura.
Also, the new home must be purchased or built within two years - before or after - the sale of the original property. If the new house
is purchased before the old house is sold, the market value of the new
house on its purchase date cannot exceed 100% of the old home's market
value on the date it is sold.
if you are thinking about downsizing and have any questions regarding
eligibility requirements for Propositions 60 or 90, how they work intra-
and inter-county, I would be happy to answer any questions to help you
make an informed decision.