Source: http://www.margomurray.com/transfer_of_property_taxes_propersition_60
Timestamp: 2018-12-09 21:41:04
Document Index: 476908361

Matched Legal Cases: ['§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69', '§ 69']

Prop 60 Transfer Of Property Taxes
SALE AND REPLACEMENT OF PRINCIPAL RESIDENCE BY TAXPAYERS 55 YEARS OF AGE OR OLDER
Q 1. Is Is there a property tax reassessment exemption for taxpayers 55 years of age or older?
A. Yes. Under certain conditions as described below, a taxpayer who is 55 years of age or older may transfer the Proposition 13 base-year assessment value of his or her principal residence to any replacement dwelling of equal or lesser value in the same county and, sometimes, in another county. Cal. Rev. & Tax Code § 69.5(a)(1)and (2).
Q 2. Must the sale of the original property and the purchase of the replacement dwelling happen at the same time?
A. No. A taxpayer has either two years before the sale of the original dwelling or two years after the sale of the original dwelling to purchase or construct the replacement property.
For this purpose, a “sale or purchase” occurs when title to the property is transferred (e.g., date of close of escrow). “Construction” occurs as of the date of completion. The taxpayer must actually own and occupy the new property as his or her principal residence within this period. Cal. Rev. & Tax Code §§ 69.5(a)(1) and (b)(5).
A. No. The base-year value of the original property cannot be transferred to the replacement dwelling until the original property is sold. In this case, the taxpayer would pay taxes on the new residence based on its purchase price until the old residence is sold. Cal. Rev. & Tax Code § 69.5(b)(4).
A. This exemption is available for any dwelling owned and occupied by a taxpayer as his or her principal residence, unless the dwelling is receiving a different real property exemption. The dwelling may be a single family home, a unit in a common interest development (e.g., co-op, condo, townhouse) or a mobilehome. Cal. Rev. & Tax Code §§ 69.5(b)(7)and (c).
A. As long as the mobilehome is subject to property taxation and the other requirements stated above are met, the taxpayer is elegible whether he or she owns the mobilehome only, or both a mobilehome and the land beneath it. If the either mobilehome or combination of mobilehome and land on which it is situated constitutes a taxpayer’s original property, the assessor will transfer to the taxpayer’s replacement dwelling the base-year value of the mobilehome or the base-year value of the mobilehome and the land, whichever is appropriate. Land owned by the claimant includes a pro-rata interest in a resident-owned mobilehome park. Cal. Rev. & Tax Code § 69.5(c)(2).
Similarly, if either the mobilehome or mobilehome and land constitutes a taxpayer’s replacement dwelling, the assessor will transfer the base-year value of the original property either to the mobilehome or to the mobilehome and land, as is appropriate. However, land constituting a part of the replacement dwelling includes only an “area of reasonable size which is used as a site for a residence.” Cal. Rev. & Tax Code §§ 69.5(c)(2) and (g)(3).
A. Yes. In order to claim this exemption, a taxpayer must be both an owner and resident of the original property either at the time of the sale of that property, or within two years of the purchase or new construction of the replacement dwelling, and the property must be his or her principal residence. Moreover, a taxpayer is not eligible for the tax relief until he or she actually owns and occupies the replacement dwelling as his or her principal place of residence. Cal. Rev. & Tax Code §§ 69.5(b)(1) and (4).
A. This exemption is limited to individual taxpayers. The statute is silent as to its applicability to those cases in which the taxpayers have title to the property in a revocable living trust. It is recommended that taxpayers consult with the local assessor’s office. Clearly a good argument can be made for those situations in which the trustor, trustee, and beneficiary includes the taxpayer who is 55 or older. Cal. Rev. & Tax Code §§ 69.5(g)(9) and (11).
A. Yes. If a replacement dwelling is purchased or constructed by all of the co-owners and each co-owner retains an interest in the replacement dwelling, only one co-owner needs to be at least 55 and use the property as a principal residence in order for the property to qualify for the reassessment exemption. Cal. Rev. & Tax Code § 69.5(d).
A. No. Only one of the co-owners can take advantage of this reassessment exemption. They must determine by mutual agreement which one it will be. Cal. Rev. & Tax Code § 69.5(d)(2).
A. Yes. If two co-owners occupied separate units in their original, multi-unit property, each one is eligible for the exemption if he or she purchases a separate replacement dwelling. Cal. Rev. & Tax Code § 69.5(d).
A. No. A taxpayer may take advantage of this law only once. However, if a claimant transfers the base-year value to a replacement property because he or she is at least 55 years old and, subsequently, becomes severely and permanently disabled, then he or she may transfer the base-year value again. Cal. Rev. & Tax Code § 69.5(b)(7).
A. No. Only one spouse needs to meet the age requirement. Cal. Rev. & Tax Code §§ 69.5(b)(3) and (g)(1).
A. Only one of the spouses (or ex-spouses) is eligible for the exemption. If both are at least 55 years old, they must determine by mutual agreement who will take the exemption. If only one of them is at least 55, then that person is the one who is eligible for the exemption. Cal. Rev. & Tax Code § 69.5(d)(3).
A. Yes, but only if this spouse was not a co-owner of the replacement property that received the exemption. Cal. Rev. & Tax Code § 69.5(g)(9).
A. The taxpayer or the taxpayer’s spouse must be 55 years old at the time of the sale of the original property. Cal. Rev. & Tax Code § 69.5(g)(1).
Q 16. Must a “claimant”— person claiming the property tax exemption-- prove that the age requirement has been satisfied?
A. Yes. The claimant must provide either proof of age or certify under penalty of perjury that the age requirement is satisfied. Cal. Rev. & Tax Code § 69.5(f)(2).
A. Maybe. The answer depends on the county in which the replacement property is located. Under the original verion of the law, enacted by Proposition 60, the replacement dwelling, including the land on which it was situated, had to be located entirely within the same county as the taxpayer’s original property. However, Proposition 90 extended the rule of Proposition 60, under certain circumstances, to other counties. The county board of supervisors of the county in which the replacement property is located must adopt an ordinance making the provisions of Proposition 90 applicable to their county.
See the legal memorandum, Proposition 90 Watch, for a list of those counties that have adopted a Proposition 90 ordinance. It is also advisable to contact the county board of supervisors to confirm their participation in Proposition 90. Because many cities are experiencing a financial crunch, they may choose to opt out of Propostion 90. Once a city passes a Proposition 90 ordinance, the city may not opt out for 5 years. Cal. Rev. & Tax Code § 69.5(a)(2).
A. No. Cal. Rev. & Tax Code § 69.5(a)(2).
A. No. Cal. Rev. & Tax Code § 69.5(a)(1).
A. If the replacement dwelling is purchased or built prior to the sale of the original property, then “equal or lesser value” means the full cash value (i.e., sales price) of the replacement dwelling cannot exceed the full cash value (sales price) of the original property.
For example, if the original property sold January 1, 2003 for $500,000, the replacement property can cost up to $525,000 if it is purchased or constructed on or before January 1, 2004 (but after January 1, 2003) and it can cost up to $550,000 if it is purchased or constructed on or before January 1, 2005 (but after January 1, 2004). Cal. Rev. & Tax Code § 69.5(g)(5).
A. It is the original property’s base-year value, as determined in accordance with Revenue and Taxaction Code Section 1l0.1, increased annually for the Proposition 13 inflation factor (2 percent maximum), determined as of the date immediately prior to the date that the original property is sold by the taxpayer. Cal. Rev. & Tax Code § 69.5(g)(2).
A. It is the latter of, the date the original property is sold, the date the replacement dwelling is purchased, or the date construction of the replacement dwelling is completed. Cal. Rev. & Tax Code § 69.5(h).
Q 23. What if the taxpayer purchases a replacement property, is granted a transfer of base-year value from his or her original residence, and then performs new construction on the replacement property—will the transfer apply to the replacement property, as improved, or will the new construction trigger a reassessment?
A. There will be no reassessment on the improved property so long as:
the fair market value of the additional construction on the date of completion plus the full cash value of the replacement dwelling on the date of acquisition is not more than the full cash value of the original property (as defined in Question 20). Cal. Rev. & Tax Code § 69.5(h)(4).
Q 24. What if a taxpayer does not want to transfer his or her base-year value to the new home—is this new tax treatment automatic?
A. No. The exemption applies only if the taxpayer decides to take the exemption and completes the required form from the local county assessor’s office. Click here for a list of all the California county property tax assessors’ offices. [www.boe.ca.gov/proptaxes/assessors.htm] Some offices have links to the actual forms to request this reassessment exemption. Cal. Rev. & Tax Code § 69.5(h).
A. A claim for exemption from reassessment pursuant to Proposition 60/90 must be filed within three years of the date the replacement dwelling is purchased or the construction of the replacement dwelling is completed. Cal. Rev. & Tax Code § 69.5(f).
A. Yes, under certain circumstances. To rescind a claim for transfer of a residential base-year value and, therefore, not be considered to have received property tax relief for purposes of future transfers, the taxpayer/claimant must deliver a written notice of rescission to the office of the assessor in which the original claim was filed and signed by all the original claimants.
The notice must be delivered to the assessor’s office before the date that the county first issues a refund check for the property taxes imposed on the replacement dwelling. If no refund is involved, then the notice of rescission must be delivered before payment is first made (or before payment would be delinquent if not paid) of any property taxes imposed on the replacement dwelling consistent with the granting of the transfer request.
In addition, the taxpayer must accompany the written rescission notice with a fee required by the assessor’s office. Cal. Rev. & Tax Code § 69.5(i).