CA Property Tax Transfer For Age 55 and Older When Downsizing

Proposition 60 allows transfers of base year values within the same county. Proposition 90 allows transfers from one county to another county in California and it is the discretion of each county to authorize such transfers.

六十號提案允許在同一個郡內轉移base year values; 而九十號提案則允許在加州不同郡內的轉移base year values, 而每個郡有權裁定這類的轉移.

As of June 5, 2015, the following 11 counties* in California have an ordinance enabling the intercounty base year value transfer:

North CA: Alameda, El Dorado**, Tuolumne, San Mateo, Santa Clara (北加有五郡)

South CA: Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura (南加有六郡)

*Since the counties indicated above are subject to change, we recommend contacting the county to which you wish to move to verify eligibility.

** On August 30, 2016, the El Dorado County Board of Supervisors approved an extension of their ordinance, which will now sunset on October 1, 2021.

有關地價稅 (Property Tax) 轉移的細節請看加州官網, 在此我只挑出幾個重點,

Propositions 60/90的資格要求?

1. 你或伴侶在原本的住所賣掉的當年已滿五十五歲. (You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold).
2. 即將替換的新住所必須是你的主要住所 (The replacement property must be your principal residence and must be eligible for the homeowners’ exemption or disabled veterans’ exemption).
3. 即將替換的新住所必須和原住所等值或較低的市值 (The replacement property must be of equal or lesser “current market value” than the original property). The “equal or lesser” test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.
4. 即將替換的新住所必須在原住所買賣完成的前後二年內買好或蓋好 (The replacement property must be purchased or built within two years (before or after) of the sale of the original property).
5. To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
6. Your original property must have been eligible for the homeowners’ or disabled veterans’ exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.

The original property must be subject to reappraisal at its current fair market value at the time of sale, unless the buyer(s) of your original property also qualify the property as a replacement property for a base year value transfer due to disaster relief or a base year value transfer for a severely and permanently disabled person. Therefore, most transfers between parents and children will not qualify.

一戶 ( 已婚者) 一生只有一次地價稅轉移的機會 (This is a one-time only benefit). Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again, even upon your spouse’s death or if the two of you divorce. 唯一的例外是在你轉移地價稅之後, 不幸殘障, 則有機會因為殘障而享有第二次的地價稅轉移.  The only exception is that if you become disabled after receiving this tax relief for age, you may transfer the base year value a second time because of the disability, which involves a different claim form.

What does “equal or lesser value” of a replacement property mean?

The market value of the replacement property as of the date of purchase must be equal or less than the market value of the original property on the date of sale. The meaning of “equal or lesser value” depends on when you purchase the replacement property. In general, equal or lesser value means:

• 100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or
• 105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the sale of the original property, or
• 110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.

In determining whether the “equal or lesser value” test is met, it is important to understand that the market value of a property is not necessarily the same as the sale or purchase price. The assessor will determine the market value of each property. If the market value of your replacement dwelling exceeds the “equal or lesser value” test, no relief is available.

If a replacement home is newly constructed, what is the date of completion?

The date of completion of a newly constructed replacement home shall be the date that the property has been inspected and approved for occupancy by the local building department, or, if there is no such inspection and approval procedure, when the prime contractor has fulfilled all of the contractual obligations. If inspection and approval procedures are non-existent and there is no prime contractor, the date of completion is when outward appearances clearly indicate it is immediately usable for the purpose intended.

The construction on replacement property must be completed within two years of the sale of the original property to qualify for Proposition 60/90/110 tax relief. The replacement lot may be purchased any time, but completion of the construction on the lot must occur within two years of the sale of the original property.