Since California passed Proposition 13 in 1978, Property Taxes can only be increased to current market value upon change of property ownership.
In 1986, California passed Proposition 60, allowing qualified persons over 55 to transfer the base year property tax values of their original home to a replacement residence of equal or lesser value under certain circumstances, as long as you stay in the same County. This is ideal for empty nesters who want to downsize, but are concerned about a huge increase in their property tax.
In 1988, Proposition 90 was passed. Similar to Proposition 60, but it allows transfer between Counties, and only if the replacement property county has adopted a county ordinance. There are only 8 California counties at present allowing intercounty transfer.
For more information: http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm
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