Base Year Age 55 And Older

To qualify for this exclusion, the following conditions must be met:

• Claimant must be age 55 or older at the time the original property is sold.
• Either the sale of the original home or the purchase or new construction of the replacement home, or both, must occur on or after April 1, 2021.
• The claimant must own and reside in the original property at the time of sale or within two years of the purchase or new construction of the replacement property.
• The original property must have been eligible for the homeowners’ or disabled veterans’ exemption and the replacement property must be eligible for one of these exemptions.
• The original property must be sold, and the replacement property purchased for consideration. Consideration is defined as something of value such as payment of cash, creation or cancellation of debt, or exchange of other property.

A claimant may purchase or newly construct a replacement property of any value; however, any value in excess of the original property’s market value is added to the original property’s transferred base year.  If the replacement property is of equal or lesser value as compared to the original property, then the factored base year value of the original property, plus any applicable annual inflationary adjustments that occurred between the date the original property was sold and date that the replacement property was purchased or new construction completed, becomes the new base year value of the replacement property.

“Equal or lesser value” means that the full cash value (commonly referred to as market value) of the replacement property does not exceed one of the following:

• 100 percent of the original property’s market value if the replacement property is purchased or new construction completed before the sale of the original property,
• 105 percent of the original property’s market value if the replacement property is purchased or new construction completed within the first year after the sale of the original property,
• 110 percent of the original property’s market value if the replacement property is purchased or new construction completed within the second year after the sale of the original property.
• If the replacement property’s market value is greater than the original property’s market value, then the amount above the “equal or lesser value” of the original property’s market value is added to the transferred factored base year value.

To file a claim for Base Year Transfer for Property Owners age 55 and over, please complete and submit the form by utilizing the link below:

https://taxpayer.justappraised.com/dashboard/form/FORM_19_B

For Transfer of Property Tax Base to Replacement Property – Age 55 and older, occurring on or before March 31, 2021.

Revenue and Taxation code section 69.5 allows persons age 55 and older to transfer the base year value of their current principal residence to a replacement dwelling located in the same county or in some cases another California county.

Base year value transfers within the same county or intracounty transfers.  The exclusion for intracounty transfers, more commonly referred to as Proposition 60, was approved by voters in 1986 and is effective through March 31, 2021.

The base year value transfer under Propositions 60 is available for the replacement of a principal residence under the following circumstances:

• A person who is 55 or older sells their home, which was their principal residence (referred to as the original property), and purchases a replacement residence or builds a new residence (referred to as the replacement property) within two years of the sale of the original property, and;
• The market value of the replacement property must be of “equal or lesser value” than the original property that was sold. This means 100 percent or less than the original property’s market value if the replacement property is purchased before the sale of the original property. It also means that the replacement property’s market value can be up to 105 percent of the original property’s market value if the replacement property is purchased or newly constructed within the first year after the sale of the original property; and up to 110 percent if the replacement is purchased or newly constructed within the second year after the sale of the original property.
• The original property and replacement property are located in the same county;

To file a claim for BOE 60 AH, Claim of Persons at least 55 years of Age for transfer of Base Year Value to Replacement dwelling, please complete and submit the form by utilizing the link below:

https://taxpayer.justappraised.com/dashboard/form/FORM_60_AH

Additional information can be found by visiting the State Board of Equalization’s website at www.boe.ca.gov.