Proposition 60 and 90

Did you know that there is a way to keep your original tax base if you move from one property in Santa Barbara County to another property within Santa Barbara County?  If this sounds interesting; here are a few facts.

What Are Proposition 60 and 90?
These propositions provide a one time property tax benefit by preventing reassessment when a senior citizen (age 55 years or older) sells his/her existing residence and purchases or constructs a replacement residence worth the same or less than the original property.  This proposition either applies to the principal claimant of the original residence or a spouse who resides with the seller who must also be 55 years of age at the time of the sale.

Why Were Proposition 60 and 90 Enacted?
These propositions were set forth to encourage senior citizens to “move down” into a smaller residence and not be penalized by having to pay higher property taxes.  When a senior citizen acquires a replacement property worth equal or less than the original property, he/she will continue to pay approximately the same amount of the annual property taxes as before.

How Do These Propositions Work?
When the homeowner purchases or constructs a new residence, it will not be reassessed if he/she qualifies.  The Assessor transfers the factored base value of the original residence to the replacement residence.  Proposition 60 requires that both the original and replacement homes be within the same county.  Proposition 90 was later enacted to broaden the effects of Proposition 60.  Proposition 90 enables homeowners to transfer the principal residence to include other counties, as long as that county has implemented the initiatives.  Your local Tax Assessor will be able to give you information as to which counties participate within the guidelines of proposition 90.

As always; please check with your CPA, Tax Attorney or local Tax Assessor!