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California Propositions

That May Benefit You.

Please consult with your accountant, estate planner or any other professional you rely on. This is basic information and subject to change

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Prop 13

Maximum tax on full property value is 1% and a maximum increase per year of 2%

Prop 8

Mostly used in a declining market. You can apply to have your property assessed at a lesser value of the Prop 13 value so you may be able to reduce your tax rate.

Prop 58

No property tax shall be reassessed when parents transfer their principal residence to to their children, and the 1st million of any other property that the parents own.  (This all can be done when the parents are alive.)

Prop 193

No property tax reassessment when grandparents transfer a home to a grandchild.

 

Prop 60

Allows homeowners age 55 and over to carry their current assessed value from selling their primary home  to another home within the same county as long  as the replacement home is purchased within 12 months  and does not exceed 105% of selling price (or up to 110% if purchased in second year.) Be aware: If the replacement property  is purchased before selling primary home primary  home must sell for equal or  more than the price of replacement home.

 

Prop 90

Allows counties to participate in a reciprocal  arrangement to apply prop 60.  (11 out of 58 counties in California participate)

 

Prop 110

Propositions 60 and 90 benefits can only be used once in a lifetime. It’s an age based claim. However, if the homeowner subsequently becomes severely and physically disabled and has to move slowly because of physical disability, the current assessed value can be carried a second time! Worth noting: This benefit does not require one to be age 55. ( But if the disability is the basis of the first use, then a second transfer based on age is not permitted)