Property Tax Reappraisal Exclusion

 

Propositions 60, 90 and 110 amended the California Constitution to provide California homeowners over the age of 55, or persons of any age who are severly and permanently disabled, with a one-time opportunity to avoid increased property taxes. These constitutional provisions allow a qualified individual to transfer the proposition 13 base-year value from his or her principal residence when the individual sells that residence and purchases another residence of equal or lesser value.

Under Proposition 13, a home is reassessed for property taxation at its current fair market value whenever a change in ownership occurs. Because real property values typically increase, reassessment usually results in higher property taxes for a buyer of a new home. Proposition 60 and 110 were designed to help persons age 55 and older or severly and permanently disabled persons who move to smaller homes by allowing them to keep the Proposition 13 base-year value when moving from one home to another in the same county. Proposition 90 allows a qualified individual to transfer the base-year value of the original property to another county if that county has approved such transfers into the county.

As of April 15, 2005, the counties with the ordinance are:

Additional, the original property must have been eligible for the homeowners' exemption or the disabled veterans' exemption.