Can I transfer my property tax base when I sell my home?
Many of my clients who sell their home move out of the area. They frequently ask me if they can use their low Alameda County property tax base when they downsize in another area in California. Some counties in California participate in the transfer of a seller’s property tax base when they sell their home and buy a replacement home of equal or lesser value. Currently the following counties have ordinances allowing Props 60 and 90 property tax base transfers: Alameda, Santa Clara, San Mateo, El Dorado, Los Angeles, San Diego, Ventura, Orange, San Bernadino, Toulumne and Riverside. The legislature may be considering that all counties in California participate in Prop 90 tax base transfer in the future.
At the time of the sale, an owner of the property must be 55 years old. If there are co-owners of the property, only one need be 55 years old. Regardless of age, if an owner is severely and permanently disabled a transfer of the property tax base to a replacement home.
Transfer of the property tax base can be used only once, unless the person seeking the transfer is now severely and permanently disabled.
The replacement home must be purchased or newly constructed within two years either before or after the sale of the original property.
The sale of the home must result in a change of ownership and a subsequent re-appraisal of the home to its current market value to transfer the tax base.
Transfer of the property tax base requires that the owner of the replacement property to live in the property and the property be the principal residence of the owner.
The market value of the property which tax base is being transferred “must be equal or less than the market value of the original property on the date of the sale.” According to California Board of Equalization equal or less means:
100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or
105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the sale of the original property, or
110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.
In Alameda County you may apply to transfer your property tax base by call the Assessor’s Office at 510-272-3787 (base value transfers).
If you are considering selling your home I can help you navigate the property tax transfer gauntlet. Call or email me at 510-504-5612, firstname.lastname@example.org. Visit my Facebook page Senior Living in Alameda.