Hello.
The "over 55" rule that allows seniors who move to transfer their old
property tax assessment to a new residence is the result of two
California propositions: Prop. 60 & Prop. 90.
The Los Angeles County Assessor has a very thorough explanation of
these rules on its web site. See:
Los Angeles County Assessor
Homeowner's Guide to Proposition 60 and Proposition 90
http://www.lacountyassessor.com/extranet/guides/prop6090.asp
Here's a summary of the regulations from the L.A. County Assessor:
"PROPOSITIONS 60 AND 90 ELIGIBILITY REQUIREMENTS:
1. The replacement property must be the owner's principal residence
and eligible for the Homeowners' Exemption. The original property, at
the time of its sale, must have been eligible for the Homeowners'
Exemption, or entitled to the Disabled Veterans' Exemption.
2. The seller of the original residence, or a spouse residing with
the seller, must be at least 55 years of age, as of the date that the
original property is transferred.
3. The replacement property must be of equal or lesser "current
market value" than the original.
4. If the replacement is purchased in Los Angeles County, the
original can be located in Los Angeles County or any other California
county. Several other counties have passed similar Proposition 90
local option ordinances. If your original is in Los Angeles County,
and you want to relocate in another county, contact that county for
Proposition 90 eligibility.
5. The replacement property must be purchased or newly constructed
within two years (before or after) of the sale of the original
property.
6. The owner must file an application within three years following
the purchase date or new construction completion date of the
replacement property.
7. This is a one-time only filing. Proposition 60/90 relief cannot
be granted if the claimant, or spouse, was granted relief in the past.
8. Proposition 60/90 relief includes, but is not limited to: single
family residences, condominiums, units in planned unit developments,
cooperative housing corporation units or lots, community apartment
units, mobile homes subject to local real property tax, and owners'
living premises which are a portion of a larger structure.
9. In most instances, if more than one owner of an original
property is eligible for Proposition 60/90, they must choose among
themselves which one will use the benefits."
source: Los Angeles County Assessor
http://www.lacountyassessor.com/extranet/guides/prop6090.asp
----
I notice that you mention "purchasing another residence with a greater
purchase price than what they received for their old home."
To qualify for the exemption, the replacement home must be of "equal
or lesser value." Here's the official explanation of what that means:
'Q. What is meant by "equal or lesser value" of a replacement property?
A. It depends upon when you purchase the replacement property. In
general, "equal or lesser value" means:
100 percent or less of the market value of the original property
if a replacement property is purchased before an original property is
sold.
105 percent or less of the market value of the original property
if a replacement property is purchased within the first year after an
original property is sold.
110 percent or less of the market value of the original property
if a replacement property is purchased within the second year after an
original property is sold. "'
source: Los Angeles County Assessor
http://www.lacountyassessor.com/extranet/guides/prop6090.asp
-------------
search strategy: Los Angeles County Assessor
propositions 60, 90
I am confident that the information provided above is the exact
information that you are seeking. Good luck on qualifying for the
exemption! |
