I consulted with a client this week concerning a few real property exchange/transfer issues, including potential application of Proposition 60. Given the robust real estate market in California, I would expect to see Proposition 60 applications rise for the foreseeable future as homeowners older than 55 years old seek to sell at the top of the market and find suitable replacement properties with their reduced tax basis.
Generally speaking, Proposition 60 allows certain real property owners to transfer their base year tax values within the same county. Proposition 90 allows intercounty transfers, though it is in the discretion of each county as to whether to authorize such transfers (note that Contra Costa County does not permit intercounty transfers).
The link I’ve attached below from the Board of Equalization outlines the eligibility requirements for Proposition 60 relief in great detail, including certain age, principal residence, market value, and timing requirements.
Given that this Proposition 60 transfer can be utilized only once by each claimant, there is certainly a strategy to be employed by an age 55 or older homeowner with respect to when and how to transfer their base year value. With proper planning concerning the mechanics of selling an original property and acquiring a replacement property, the benefits of Proposition 60 are significant and should be considered by any potentially eligible claimant.