Tuesday, July 25, 2006

Want To Keep Your Tax Base When You Move? Over 55?

I recently got a phone call about this subject, and it reminded me what an advantage it can be for certain situations. Proposition 60, provides for the transfer of property tax base for senior citizens. Maybe their home is more than one level and the stairs are getting difficult, or maybe the yard is too much upkeep, or maybe they just want to be closer to the grandkids!

REQUIREMENTS
On November 4, 1986, the voters of California passed Proposition 60 to provide to 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. The requirements for this exclusion are as follows:
1. At the date of transfer of the original property, the transferor (seller) must be at least 55 years of age. (If married, only one spouse must be at least 55, but must reside in the residence; if co-owners, only one co-owner must be at least 55 and must reside in the residence.)
2. The replacement property must be purchased or newly constructed on or after November 5, 1986. The replacement residence must be purchased or newly constructed within 2 years before or after the sale of the original residence.
3. The sale of the original residence must qualify for reassessment as the result of its transfer.
4. The principal claimant must have been (1) receiving, or eligible for, a Homeowner's Exemption or (2) have been receiving a Disabled Veteran's Exemption on the original and replacement residences.
5. The replacement residence must be "equal to or lesser" in market value than the original residence. In general, "equal or lesser" than market value of a replacement dwelling has been defined as: 100% 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% of market value of original property as of its date of sale if a replacement dwelling is purchased the same day or within one year after the sale of an original property; 110% of market value of original property as of its date of sale if a replacement dwelling is purchased within two years after the sale of an original property.
6. The claimant and/or claimant's spouse can only be granted relief under this section once. The disclosure of social security numbers by all applicants is required. They are used by the assessor to verify the eligibility of persons claiming this exemption and by the State to prevent multiple claims in different counties. This claim is not open to public inspection.
This is me talking again. This tax benefit can be used within Ventura County, or with Prop 90, it can be transferred between participating counties. More on that soon!
Search the MLS for Ventura County Real Estate at:

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