Are you a Santa Clara County homeowner aged 55 or more? Is your current home too much for you to handle? It might be time to downsize. Thanks to Propositions 60 and 90, you may be able to move into another home without having to pay more for your property taxes.
What Are Props 60 & 90?
Prop 60 allows Santa Clara homeowners to transfer their property tax base from their current primary residence to a new home purchased in the same county. For example, let's say you currently own a home in San Jose. You find the perfect property to move to in Mountain View. Through Prop 60, you can transfer your property tax base between the two homes. This is only true if you buy a home of equal or lesser value than the one you are selling.
Prop 90, on the other hand, allows Santa Clara homeowners to transfer their property tax base between other participating counties in the state. For example, your primary residence is in Santa Clara County. You want to move down to San Diego County to be closer to your children and grandchildren. Through Prop 90, you can do so as long as long as the new primary residence in San Diego is of the same or lesser value than the one you will be selling in Santa Clara County. And vice versa.
California Counties Participating in Prop 90
Prop 90 only works with other participating counties. Currently, you are limited to an inter-county tax base transfer between the following counties:
- El Dorado - Only good through October 1, 2016
- Los Angeles
- San Bernardino
- San Diego
- San Mateo
- Santa Clara
This has the possibility of saving Santa Clara homeowners potentially thousands of dollars in property taxes over the lifetime of their new home loan. However, the Prop 60/90 benefit can only be utilized once. This includes any spouse living with you at the time. When either one of you passes or if you get divorced, this does not "reset". Neither one of you can use this transfer again...ever. For a complete breakdown of both propositions, please visit the California State Board of Equalization website.
Only you can decide when and if Props 60 or 90 would be beneficial to you. Contact me when you are ready to buy or sell your Silicon Valley home. I'm more than happy to answer any questions you may have.