Ever since I wrote a story saying Prop. 90 could usher in some new business for Coachella Valley agents, I have been getting phone calls and emails from curious buyers about what this all means.
What’s Prop. 60? What’s Prop. 90? And why is it called Prop. 60/90?
For starters, Prop. 60/90 is just the official lingo used by the real estate industry. You’ll hear agents and local officials refer to it this way, because they are related, like family members.
Both propositions are related to the transfer of base-year property values. Prop. 60 lets owners transfer within the same county. Prop. 90 lets owners transfer to another county, but only nine California counties allow the transfer. Both the original and replacement homes have to be in one of these nine counties.
Because you get to keep your base-year property value from many years ago, your property taxes on the new home could in theory be much cheaper than taxes on the county-assessed value in today’s market.
There are a number of caveats:
- This applies to homeowners aged 55 and older
- The replacement home must be your primary residence (no vacation homes or second homes)
- The replacement home must be eligible for a homeowner’s exemption or disabled veterans’ exemption
- The replacement home must be of equal or lesser “current market value” than the original home
- This is a one-time deal (can’t move and transfer a second time)
There are a few other details that get into the minutiae of what does or doesn’t count. I’m doing research for another story explaining the two propositions.
Are you at least age 55, thinking of buying a property in Riverside County and may be eligible for Prop. 60/90? Feel free to ping me with questions.
Business and real estate reporter Dominique Fong can be reached at (760) 778-4661, firstname.lastname@example.org and on Twitter @dominiquefong.