On November 4, 1986, the voters of California passed Proposition 60 to provide qualified homeowners the transfer of the base-year value of their principal residence to a replacement dwelling located in the same county, under certain circumstances.

Qualification Requirements:

  1. On the date of the transfer of the original property, the transferor (seller) must be at least 55 years of age.  If the transferor is married, only one spouse must be at least 55.
  2. The original property must be the claimant’s principal residence.  If an original property is a multi-unit dwelling, each unit shall be considered a separate original property.

Eligibility Requirements:

  1. The replacement dwelling must be purchased or newly constructed within 2 years of the sale of the original property.
  2. The original property must be subject to reappraisal at its current fair market value.
  3. The claim form must be filed within 3 years of the date a replacement dwelling is purchased or new construction of that replacement dwelling is completed.  If the claim if filed after 3 years, relief will be granted beginning with the calendar year in which you file the claim.

If you sold the original property to your parent, child, or grandchild and that person filed a claim for the parent-child or grandparent-grandchild change in ownership exclusion, then you may not transfer your base year value under section 69.5.

Definition of Equal or Lesser Value:

  1. In general, equal or lesser value means the fair market value of a replacement property on the date of purchase or completion of construction does not exceed
  2. 100 percent of market value of original property as of its date of sale if a replacement dwelling is purchased before an original property is sold;
  3. 105 percent of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property;
  4. 110 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within the second year after the sale of the original property.

If the original property was substantially damaged or destroyed by misfortune or calamity (not a Governor-declared disaster) and sold in its damaged state, the fair market value of the property immediately preceding the damage or destruction is used for purposes of the equal or lesser value test. A property is "substantially damaged or destroyed" if either land or improvements sustain physical damage amounting to more than 50 percent of its full cash value immediately prior to the misfortune or calamity.

Filing Requirements:

  1. Complete the claim form BOE-60-AH, Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling.
  2. Provide evidence of at least 55 years of Age.
  3. Disclosure of social security number by all claimants.

To qualify for the Prop 60 tax base transfer:

  1. The claimant or claimant’s spouse must be age 55 or older when the original residence is sold.
  2. The market value of the replacement residence must be equal or less than the market value of the residence sold.
  3. The replacement resident must be purchased within two years either before or after the current residence is sold.
In general, equal or lesser value means that the fair market value of a replacement property on the date of purchase or completion of construction does not exceed 100 percent of market value of original property as of its date of sale if a replacement dwelling is purchase before an original property is sold; 105 percent of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property; 110 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within the second year after the sale of the original property.
No, you must be at least 55 when your original property sells. While you may be 54 when you purchase your replacement property, you must be at least 55 when you sell your original property.
Yes. Only one claimant/occupant (or his/her spouse who was also an occupant) who was a qualified record owner of the original property must be at least 55 years of age.
Once. A claimant who has not previously been granted this property benefit is eligible.
No. However, you can be granted a Proposition 60 transfer of base year value for claimant who is at least 55 years of age and then be granted a Proposition 110 transfer of base year value for disabled claimant.
The transfer would be granted only if physical construction is undertaken to convert multiple units into a single merged unit. The construction must be completed within two years of the sale of the original property. In addition to a traditional single family residence, the original or replacement property may be a single unit in a cooperative housing corporation, a community apartment project, a condominium project, or a planned unit development.
No. When the replacement dwelling is purchased or newly constructed, the assessor is mandated by law to issue supplemental assessments (positive or negative) for all transactions that result in a base-year value change, including those that qualify under Proposition 60.This is accomplished by comparing the factored base-year value of the original property to the factored base-year value of the replacement dwelling property.
Yes. Any reduction in value will be refunded in the form of a negative supplemental. Please be aware that the refund may not arrive before the second installment of the secured tax bill is due. No adjustments are made to the secured tax bill to reflect the Proposition 60 exclusion.
No. The replacement lot may be purchased any time before the sale of the original property; however, the new construction of the residence must be completed within two years of the sale of the original property.
Yes, as long as you have moved into the inherited residence and live in it as your primary place of residence. I you are over age 55, you may sell your primary residence, buy another residence, and transfer the base year value as long as all the other requirements (timing, value, residency, timely filed claim) are met. It does not matter how you acquired your original property.
No. The law provides that an original property must be sold for consideration and subject to reappraisal at full market value at the time of sale. Original property transferred to a child or disposed of by gift or devise does not qualify.
No. Transfers between counties (Proposition 90) are allowed only if the county in which the replacement dwelling is located has passed an authorizing ordinance. San Francisco County does not have this ordinance. Therefore, San Francisco County only accepts properties sold in San Francisco and replacement properties purchased in San Francisco.
If you still have questions about Proposition 60, please call the San Francisco Assessor’s Office at 415-554-5596 for more information.