Proposition 60

About Prop 60

Prop 60 was a constitutional amendment approved by the voters of California in 1986. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows the transfer of an existing Proposition 13 base year value from a former residence to a replacement residence, if certain conditions are met. This benefit is open to homeowners who are at least 55-years old and meet the requirements.

Senior citizens 55 years of age or older can buy a residence of equal or lesser value than their existing home and transfer the current taxable value to their new property. This provides property tax relief for seniors by preventing a tax increase if they sell an existing home and buy another. This is a one time program, and you must buy and sell within two years. The properties must also be the principal place of residence. Finally you must file the necessary application with the Tax Assessor.

Prop 60 Conditions

The following conditions must be met for tax relief to be granted under Prop 60:

Both the original property (former residence) and its replacement must be located in the same county. If the replacement property is located in a different county from the original, see Proposition 90.
As of the date of transfer of the original property, the seller or a spouse living with the seller must be at least 55 years old.
The original property must have been eligible for the Homeowners' Exemption or entitled to the Disabled Veterans' Exemption.
The replacement dwelling must be of equal or lesser value than the original property.
The replacement dwelling must have been purchased or newly constructed on or after 11/06/86.
Without exception, the replacement dwelling must be purchased or newly constructed within two years (before or after) of the sale of the original property.
The original property must be subject to reappraisal at its current fair market value as the result of its transfer, in accordance with Sections 110.1 or 5803 of the Revenue and Taxation Code.
Without exception, a claim for relief must be filed within three years of the date a replacement dwelling is purchased or new construction of a replacement dwelling is completed.

Related Propositions

All information posted is deemed accurate, but can not be guaranteed. Please consult your local tax assessors office to verify current status and provisions of this proposition before selling your home.