Town Square

Tax relief extended for seniors

Original post made by Newsboy, Portola Valley: Los Trancos Woods/Vista Verde, on Jan 24, 2007

Here is a press release from Warren Slocum.

January 24, 2007

Contact Warren Slocum, Chief Elections Officer & Assessor-County Clerk-Recorder
Phone 650.363.4988 Fax 650.363.1903 E-mail
Alternate Terry Flinn Phone 650.599.1271 E-mail

Tax Relief Extended for Seniors
Applies to all property transfers allowed under Propositions 60, 90 and 110
(Redwood City, CA) With the passage of AB 3075 (effective January 1st), the three-year claiming period for property tax programs authorized by the California Constitution under Propositions 60, 90 and 110 has been removed.
California Assessors and members of the Board of Equalization wholeheartedly endorsed and supported this legislation. “From our perspective, it was an issue of fairness,” explained Warren Slocum, San Mateo County’s Chief Elections Officer & Assessor-County Clerk-Recorder. “If an eligible individual failed to sign up within the three-year eligibility period (for whatever reason), they permanently lost the opportunity to file a claim and benefit from the program.”
“Now, anyone who would have been eligible for program relief had they submitted their claim in time will be permitted to reapply. They will not be eligible for retroactive relief, but the program benefits will be available to them prospectively,” Slocum explained.
“We want to make sure that anyone who is eligible for the program gets the word that they can apply or reapply, if previously denied,” said Slocum.
What exactly are these property relief programs? In summary, Propositions 60, 90 and 110 provide people over the age of 55 or severely and permanent disabled the opportunity to qualify for property tax savings when they sell their principal home and buy a replacement residence of the same or lower value.
Proposition 60 amended the California Constitution in November 1986. “This program helps seniors “downsize.” Many seniors find it more comfortable to move into a smaller home once their children are grown. Prop 60 addressed the problem of higher tax rates that posed a financial obstacle when they examined the tax implications of selling their home and making the move,” explained Slocum. This program allows qualified persons over the age of 55 to transfer the base year values from a former residence (“original property”) to a replacement residence if these five conditions are met:
· Both properties must be located in the same county
· The original property must have been eligible for either the homeowner’s exemption (owned, occupied and claimed as the principal residence at the time of sale or within two years of the acquisition of the replacement property or entitled to the disabled veteran’s exemption)
· The replacement dwelling must be of equal or less value than the original property
· The replacement dwelling must have been acquired or newly constructed within two years before or after the sale of the original property (after the law went into effect)
· The original property must be subject to reappraisal at its current “fair market value” as a result of its transfer
Proposition 90 extended Proposition 60’s benefits to property owners who had homes in two counties—if the county of the replacement property adopted a county ordinance permitting the local County Assessor to apply the value determined by the County Assessor of the original home. As of 2005, seven counties offered Prop 90 exclusions to seniors. They include: Alameda, Los Angeles, Orange, San Diego, Ventura, San Mateo and Santa Clara.
Proposition 110 extended Proposition 60 program benefits to severely disabled property residents. The age requirement in Proposition 60 does not apply to Proposition 110 claimants. The other mandatory conditions for eligibility include:
· The replacement property must be newly built or purchased on or after June 6, 1990
· The disability must be property certified, and
· The claimant must not have previously benefited from a replacement dwelling exclusion, unless, the person’s disability occurred after the exclusions for Propositions 60 and 90 had been applied.
For more information about these programs, go to Web Link or call the Assessor’s Office, (650) 363-4988 and talk with Terry Flinn, Paula Cuneo or Angelina Hunter.