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Property Taxes . . . A quick reminder.

The other day I was chatting with a client who had recently purchased a home and we were discussing when the property taxes would be transferred to that new home.

In California, we have Proposition 60 which allows the transfer of your property tax basis ONE TIME if you are over the age of 55. This was something we discussed in our early planning stages.

As we looked at replacement homes, we knew what the maximum amount she could spend on her new home because Prop 60 only works if the replacement house is of equal or lesser value. We had just sold her home of almost 40 years so we knew not to look at homes that would be of greater value than that one.

This was important because her property taxes on the house we just sold were about $1500 A YEAR! And if they were not transferred than the property taxes on the new house were going to be OVER $7500 a year. That $6000 a year equates to $500 a month she would have to save every month to pay the increase in just the property tax.

That is a huge increase for someone on a limited budget.

Finding a house that she wanted that was of equal or less value turned out to be harder than we thought but over the course of about 3 months we found one. She was now able to submit the proper paperwork to the assessor’s office to transfer her property taxes and continue paying $1500 a year.

For someone who is nearing retirement or is already retired it is a difficult thing to consider moving, especially when your budget may be limited.

This conversation made me realize that I cannot talk about Prop 60 and Prop 90 enough.

A more in-depth breakdown can be found on our website, but here it is in a nutshell:

Proposition 60:

You must be age 55 or over and

It must be your principal residence and

The replacement home must be of equal or lessor value than the home sold and

The replacement home must be in the same county or another participating county.

This can only be done ONE TIME, so choose your timing well.

I am so glad that I have been able to assist several of my clients move from their long-term residence and transfer their taxes.

Don’t let the thought of higher property taxes keep you in a home that is no longer a good fit.

If you think this applies to you . . . let’s talk.


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