Transfer of Assessment to a Replacement Property By Senior Citizens
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.
- 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.
- 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.
- The replacement dwelling must be purchased or newly constructed within 2 years of the sale of the original property.
- The original property must be subject to reappraisal at its current fair market value.
- 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:
- 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
- 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;
- 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.
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.
- 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.
- Provide evidence of at least 55 years of Age.
- Disclosure of social security number by all claimants.
To qualify for the Prop 60 tax base transfer:
- The claimant or claimant’s spouse must be age 55 or older when the original residence is sold.
- The market value of the replacement residence must be equal or less than the market value of the residence sold.
- The replacement resident must be purchased within two years either before or after the current residence is sold.