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Senior Citizen or Severely Disabled Programs

Prop 19 - Transfer of Base Year Value aged 55+

On November 3, 2020, California voters approved Proposition 19 (Assembly Constitutional Amendment 11, Stats. 2020, res. Ch. 31.) Prop. 19 adds sections to the California Constitution which in part changes new provisions for a base year value transfer of a principal residence for persons at least age 55 or severely disabled (known as Prop 60/90/110). Provided below are a few important changes approved by Prop. 19 for transfers of tax bases for seniors and severely disabled property owners. The value of the newly acquired property will be enrolled and billed as your new taxable value until your Prop 19 request is processed. This may take up to a year to complete depending on when your application was submitted. Once processed, a refund will be sent for any value difference. For more information please visit boe.ca.gov/prop19.

BEFORE
  • Implementing statute: RTC 69.5, Prop 60/90 and 110
  • Transfer tax bases between participating counties
  • Eligibility subject to value comparison of properties
  • Benefit can be used only once
AFTER
  • Implementing statute: TBD
  • Transfer tax bases between all counties
  • Eligibility not subject to value comparison of properties
  • Benefit can be used up to three times
  • Recipient is required to live in the property

FAQ

I am over the age of 55. What happens if I buy a new home that costs more than the original home and want to transfer my base year value?

You may be eligible for the exclusion. However, the portion that is over the value of the original property will be reassessed at current market value. You may claim this exclusion up to three times.

Base Year Transfer Calculation

Under Prop. 19, whether or not the base year value of an original principal residence can be transferred to a replacement principal residence, without adjustment, depends on the fair market values of the two properties.

If the fair market value of the replacement principal residence does not exceed the fair market value of the original principal residence, the factored base year value of the original principal residence can be transferred to the replacement principal residence without adjustment.

However, if the fair market value of the replacement principal residence does exceed the fair market value of the original principal residence, the difference between the two market values swill be added to the factored base year value of the original principal residence. The sum will be the new base year value of the replacement principal residence.

EXAMPLE

Homeowner, which is over age 55, sells a principal residence on June 28, 2021 for a full cash value of $700,000. At the time of sale, the single-family residence has a factored base year value of $225,738. On July 22, 2021, a replacement principal residence is purchased for a full cash value of $800,000. Since the full cash value of the replacements principal residence exceeds the full cash value of the original principal residence, the difference in full cash values must be calculated and added to the transferred factored base year value.

1. Calculate the difference in full cash values
$800,000 - $700,000 = $100,000
Replacement Original Difference
2. Add difference to factored base year value
$225,738 + $100,000 = $325,738
Factored BYV Difference New base year value of
replacement principal residence

If you would like additional information regarding this subject, you may submit your question to our public service staff by using our Public Inquiry Form

Prop 19 - Intergenerational Transfers (Parent/Child and Grandparent/Grandchild)

For more information see the Ownership Transfers within the Family section of our web site.

Homeowner Assistance Program

IMPORTANT: The State budget, approved for the 2008/09 fiscal year, deleted funding for the Homeowner Assistance Program. Since there is no funding in the State budget for this program, 2008 claims cannot be paid or processed. If you have any questions, please contact the State Franchise Tax Board at
(800) 852-5711 or visit their web site

Property Tax Postponement

On September 28, 2014, Assembly Bill 2231 was signed into law reinstating, with some revisions, the State Controller's Property Tax Postponement Program. The program allows senior, blind and disabled citizens, with an annual income of $35,000 or less and 40% equity in their homes, to apply to defer property tax payments on their primary residence. Beginning October 1, 2016 applications may be filed with the State Controller. For more program information contact the State Controller's Office at 1-800-952-5661 or visit their website.