You Can Still Take Advantage of Prop 90

You may remember, back in 2009, there were two state propositions passed which allowed qualifying home owners to purchase a replacement home while retaining their older, lower base year value for property tax purposes. Prop 60 allowed for residents to move within the same county and take their original base year value with them to their new property. Prop 90 allowed the same to happen in county to county moves, provided the new county has passed an ordinance to authorize the transfer of property tax values. El Dorado County is one of the state counties which has an approved ordinance in place, for now. Since February 15, 2010, qualifying Californians moving into El Dorado County have been able to take advantage of Prop 90. The initial ordinance was approved for five years. As of January 2015, however, the county extended the ordinance through September 30th, 2016.

Under Prop 60 and 90, qualifying home owners must meet certain requirements. At least one of the homeowners must be 55 years old or permanently disabled (as established through Prop 110). The original property must have qualified for either a Homeowner’s or Disabled Vets property tax exemption. The purchase of a new principal residence must occur within 2 years of the sale of the original property, and the market value of the new property must be equal to or less than 100% of the original property cash value if purchased prior to the original property sale. For those new residence purchases done after the original sale, if the new home is bought within a year, the cash value must be equal to or less than 105% of the original. If the new residence is bought in the second year, the limit is 110% of the original property’s cash value.

Base year property tax values were formulated through Proposition 13 back in 1975, which provided an initial base year starting point in which to assess all California property values. The base year value is then used to calculate annual assessments, which cannot increase more than 2% due to inflation each year. The starting base year changes when a property is sold, with the year of title transfer setting a new base year value. In the case of new construction, the year a home is built is used as the base year. One of the main purposes of Prop 13 was to help keep older Californians from being priced out of their homes through high property taxes. Props 60 and 90 take this notion a step further by helping older residents be in a position to sell and buy another home.

If you qualify for either Prop 60 or Prop 90 within El Dorado County, we can help you take advantage of the extended time in which to apply your old Base Year value to a new home before time runs out. The Friedrich Team is here to help you on the way to finding the home of your dreams. We utilize market research, the latest technologies, and best business strategies to go above and beyond your expectations. We are here to help you find solutions just right for you, and it all begins with listening to you. Call us at 916-234-6242 or you can email Renee Friedrich or Maic Friedrich, and we will bridge your way towards a new home.