California Property Taxes
June 8, 2007
In June of 1978, California voters approved Proposition 13, amending the State Consitution so that the maximum annual tax on real property is limited to one percent of "full cash value" (market value) plus a maximum of two percent annual inflation factor based on the Consumer Price Index (CPI) as calculated by the California Department of Indutrial Relations. An additional sum is allowed to pay for any bonded indebtedness approved by voters either existing in 1978 or approved thereafter.
In 1986, California voters approved Proposition 60 which allows that if either spouse is over age 55 (when the home is sold) and if the home purchased is of equal or lesser value than the home sold, the transfer of Prop 13 assessed valuation to the new property is permitted within the same county. This transfer of Prop 13 assessed valuation is only allowed once in your lifetime and not once by each spouse and only applies to the sale and replacement of a primary residence.
Proposition 90 was passed in 1988 and it allows counties to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive home. Again, this benefit is once in a lifetime and only applies to persons 55 and older.
Initially a number of counties did accept transfers from other counties but the number of counties accepting transfers has been shrinking yearly. Riverside and San Bernardino counties do not accept Prop transfers from other counties.
This transfer of tax basis is not automatic. The home owner must fill out the appropriate application. A claim of relief must be filed within three years of the date a replacement residence is purchased or new construction of a replacement dwelling is completed.
There are some other provision in the statute and persons desiring to use this property tax relief benefit should check with the county assessor to be certain that the provisions of the statute are met.
In June of 1978, California voters approved Proposition 13, amending the State Consitution so that the maximum annual tax on real property is limited to one percent of "full cash value" (market value) plus a maximum of two percent annual inflation factor based on the Consumer Price Index (CPI) as calculated by the California Department of Indutrial Relations. An additional sum is allowed to pay for any bonded indebtedness approved by voters either existing in 1978 or approved thereafter.
In 1986, California voters approved Proposition 60 which allows that if either spouse is over age 55 (when the home is sold) and if the home purchased is of equal or lesser value than the home sold, the transfer of Prop 13 assessed valuation to the new property is permitted within the same county. This transfer of Prop 13 assessed valuation is only allowed once in your lifetime and not once by each spouse and only applies to the sale and replacement of a primary residence.
Proposition 90 was passed in 1988 and it allows counties to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive home. Again, this benefit is once in a lifetime and only applies to persons 55 and older.
Initially a number of counties did accept transfers from other counties but the number of counties accepting transfers has been shrinking yearly. Riverside and San Bernardino counties do not accept Prop transfers from other counties.
This transfer of tax basis is not automatic. The home owner must fill out the appropriate application. A claim of relief must be filed within three years of the date a replacement residence is purchased or new construction of a replacement dwelling is completed.
There are some other provision in the statute and persons desiring to use this property tax relief benefit should check with the county assessor to be certain that the provisions of the statute are met.
posted by shirley harry at 8:41 AM
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