WHAT ARE Calfornia Propositions 60, 90 and 110?

Part 2 in a 2 Part Series

I think that the sale of my residence may qualify for this benefit. How do I apply?
You must file a claim with the assessor, who will determine if the transaction qualifies. Claim forms should be obtained from the assessor’s office in the county where the replacement property is located.

How do I determine if the replacement property is of “equal or lesser” value?
it depends upon the timing of the purchase or completion of construction of the replacement property. In general, “equal or lesser value” means the fair market value of the replacement property does not exceed one of the following.

100% of the market value of the original property, if the replacement property is purchased or newly constructed before the original property is sold.

105% of the market value of the original property if the replacement property is purchased or newly constructed within the first year after the original property is sold.

110% of the market value of the original property, if the replacement property is purchased or newly constructed within the 2nd year after the property is sold.

If the market value of my replacement dwelling slightly exceeds the “equal or lesser value” test compared to the market value of my original property can I still receive partial benefit?

No. Unless the replacement dwelling completely satisfies the “equal or lesser value” test, no benefit is available.

Can a taxpayer apply for and receive the benefit of Proposition 60/90/110 numerous times during the course of his/her lifetime?
Generally, no. With one exception, only claimants who have not previously been granted this benefit are eligible.

I was previously granted this benefit but have since become permanently disabled. Can I apply for and receive the benefit of Proposition 110?
Proposition 110 creates an exception from the one-time-only limitation for any claimant who becomes sevrely and permanently disabled after having previously received a base year value transfer as a claimant over the age of 55.Thus, if a person over the age of 55 transferred the base year value from an original property to a replacement dwelling and subsequently becomes disabled, than that person may now transfer his or her base year value a 2nd time.

I would like to transfer my base year value to a replacement property located in another county.Which counties have adopted an ordinance to allow such transfers?
Currently each of the following 7 counties has an ordinance implementing the inter-county base year value transfer provisions of sec.69.5 of the Revenue and Taxation Code (Prop 90):

-Alameda  -Orange  -San Mateo  -Ventura  -Los Angeles  -San Diego  -Santa Clara

If the replacement property is in a different county than the original property, only the replacement property (not the original property) must be located in one of these 7 counties. If a county has an ordinance, it will accept a base year value transfer from any other county in California as long as all the requirements are met.

What is the deadline for filing a claim?
Generally you must file your claim with the county assessor within 3 years of the acquisition or completion of construction of the replacement property.

 


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