Example of trading down, this client sold her home on Aneta and is purchasing Ventura Canyon.
They are constitutional initiatives passed by California voters. They provide property tax relief by preventing reassessment when a senior citizen sells his/her existing residence and puchases or constructs a replacement residence worth the same or less than the original.
Why are they enacted?
They encourage a person, age 55 or older to “move down” to a smaller residence. When a senior citizen acquires a replacement property worth less than the original property, he/she will continue to pay approximately the same amount of annual property taxes as before.
How do these Propositions work?
When the senior citizen, 55 and older, purchases or constructs a new residence, it is not reassessed, if he/she qualifies. The Assesser tranfers the factored base value of the original residence to the replacement residence.
Proposition 60 originally required that the replacement and the original be located in the same county. Later Proposition 90 enabled this to be modified by local ordinance.
Los Angeles County enacted an ordinance to provide that when the replacement is located in Los Angeles County, the original property may be located in another California County.
Where are the Claim Forms available?
They are distributed at the Assessor’s Public Counters, in room 225 of the Kenneth Hahn Hall of Administration, and in regional offices. If you need additional information, call (213) 893-1239
When are these Propositions effective?
The replacement residence must have been purchased or constructed on or after November 5, 1986 if it was located in in Los Angeles County
The replacement residence must have been purchased or constructed on or after November 9, 1988 if the original was located in any other California County.
Claims must be filed within three years following the purchase of the replacement residence.