In today’s world there is much discussion about whether taxes should be raised or lowered and whether government spending needs to be curtailed or increased. At times in can become mind boggling and downright depressing to think about, especially since its plastered daily all over the news. I suppose that we might as well get used to this being the topic of discussion because a national election is a little over one year away.
So many people I talk to are just weary of all of this and need some good news. Well the bright spot for those who are 55 years or older and wish to transfer their existing property tax base, then that possibility currently exists in 8 cooperating counties in California which are; Alameda, El Dorado, Los Angeles, Orange, Santa Clara, San Diego, San Mateo and Ventura counties. This of course makes sense only when the property one is selling has a lower property tax base than what the replacement property tax base would be.
Consider this scenario as an example of what I mean. Let’s assume that your current annual property tax bill is $1000 and you could sell your home for 375,000. You want to move to another county (i.e. El Dorado County) where the home you want is 350,000 and you have enough proceeds to pay cash for the home but the new property tax bill will be approximately $4375. This makes a potential move less desirable if you are on or soon to be on a fixed income.
This is where Proposition 90 comes into play and let me provide a basic summary of the process. In order to qualify you must be 55 years or older and the property that you sell must qualify as your primary residence. In addition the property that you sell needs to be valued at equal or greater than the replacement property. If you meet these criteria then you should be able to transfer your existing base year value to the replacement property, assuming the replacement property is in a county which has adopted Proposition 90. There are a couple of unique circumstances which may allow for a slight modification where the sales price is higher on the property which is purchased but it is best to confirm that information with the cooperating county or you can contact me so that I can steer you to the right source. Check out this web site (http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#2) for any additional information or frequently asked questions on Proposition 90.
There is another similar Proposition (Proposition 60) that was passed by the California voters and it allows for a homeowner who meets the same basic criteria as mentioned above, to transfer their tax base within the same county.
Just one little bit of insight that I would like to share is the abundance of affordable homes in and around El Dorado County which is one of the many locations that I service. It is also very convenient that El Dorado County has adopted the Proposition 90 ordinance. In El Dorado County you will find quality homes at bargain prices and many of them have large lots or acreage to go along with it. Some of our vacant land is being sold literally “dirt cheap” and remember what Mark Twain said; “buy land, they’re not making any more of it”.
Whether you are interested in utilizing the benefits of Proposition 90 or you just need good sound real estate advice, then please feel free to contact me. If I don’t have the information then I will find it or direct you to the place where it can be found. Please remember that I service a multi-geographical area and I network with a large group of realtor’s, brokers and mortgage professionals to help service all of your real estate needs. I can be reached at (530) 363-8662 or email@example.comWritten by: Mike Southwick Use by Permission only