Question:
“Dear Gary, I’ve been told that the San Diego Tax Assessor will allow a senior citizen to sell their existing house in another county (ie. Orange County), allow you to retain your existing property tax base, purchase a home in San Diego county and forward your original property tax base to the new home in San Diego county. This obviously “side-steps” the Tax Assessor from assigning the 1% of net value on the new purchase. Is this true? If so, what are the restrictions (ie. time restrictions, buyer age restrictions, “buy-down” restrictions)?”
Answer:
If it sounds too good to be true…it still might be true! Yes, seniors CAN sell a home and keep their low property tax base.
Proposition 60 allows homesellers 55 or older a one-time opportunity to transfer their existing low property tax bill to their next home when they sell their home and buy another. Some key rules:
- The replacement home must be bought or newly constructed within 2 years before or after the sale of the original home.
- Claims must be filed within 3 years of buying or building the replacement home.
- The new home must cost 100% or less than the old home. Or you may go up 5% if you buy within 1 year after selling the old one, or 10% if between 1 and 2 years.
- The replacement home must be in San DiegoCounty or, per Prop 90, in any county that agrees to be a “reciprocating county.” Last I checked those were:
- Alameda
- El Dorado
- Los Angeles
- Orange
- Santa Clara
- San Mateo
- Ventura
For more questions about Props 60 or 90 or for the exemption form, call me at (858)457-KENT or call the San Diego Tax Assessor at (877) 829-4732.
