From the Silicon Valley Association of Realtors:
In 1986, California voters passed Proposition 60 that amended the State Constitution to allow property owners over the age of 55 years old to move within their current county and keep their property tax base assessment from their original property. This law gave relief to seniors who moved from paying higher basic property taxes.
In 1988 California voters passed Proposition 90 that amended the State Constitution to extend the same Prop 60 rules to property owners over the age of 55 years old moving across county lines. Since Prop 90 is a "local-option" law, counties have the choice to adopt a Prop 90 ordinance and allow these types of transfer exemptions. Currently San Mateo and Santa Clara Counties both have Prop 90 ordinances.
How Proposition 60 & 90 Affect Palo Alto Homeowners
Some of the requirements for the exclusion are:
- Must purchase replacement residence within two years (before or after) of the sale of original residence.
- Claimant must be at least 55 years old at time original residence is sold and must be owner of record of both the original and replacement residences.
- Claimant must have been eligible for a Homeowner's exemption or Disabled Veteran's Exemption on the original and replacement residences.
- The replacement residence must be less than or equal in value to the original residence. Adjustments apply if replacement home is purchase 1 year or 2 years after sale of original residence.
- Claim must be filed within 3 years of the sale of the original residence. You must file the claim form and provide proof that you are at least 55 years old.
Both San Mateo and Santa Clara Counties have Prop 90 ordinances, meaning you can move between these two counties and qualify to keep your property tax base assessment.
The requirements for Proposition 90 in Santa Clara County are the same as Prop 60 except for the following:
- A non-refundable processing fee of $78 is required.
- The effective dates and filing fees vary from county to county. You need to contact the county you are moving into to verify their fees and requirements.
- Applications must be filed in the county where your new residence is located.
- Here is a list of participating counties as well as contact info for Santa Clara County.