PROPERTY TAX RELIEF FOR SENIORS AND THE DISABLED Prop 60/90 and Prop 110
One of the many things I am asked as a Senior Specialist in Real Estate by seniors as I am out marketing is "How do I afford to buy a new home when the tax bite is so hefty?" So often many seniors are not aware of the tax relief that is available to them so I point them to the following information which can also be viewed on the San Diego County Tax Assessors Website: www.sdcounty.ca.gov
State law provides property tax relief for those 55 years or older who sell their home and purchase another one of equal or lesser value . There are many other property tax relief programs available to help senior citizens on limited income, legally blind and disabled.
Q: Is tax-payment assistance available to senior citizens, and those who are blind or disabled?
A: Yes. The insert mailed along with your annual tax bill explains the two programs that offer such relief: the property-tax postponement and the property-tax assistance programs.
REAPPRAISAL EXCLUSION PROGRAM
Q: What does the Reappraisal Exclusion Program for senior citizens provide?
A: This program provides one-time property-tax relief for seniors over 55 by preventing a property valuation increase when they sell a home and purchase another home of equal or lesser value.
Q: Are there property value limits on this program?
A: Generally, the value of the replacement property must be equal to or less than the market value of the original property.
Q: If I buy a replacement home with a much higher value than my present home, can I qualify for a partial exclusion?
A: No. Partial exclusions are not allowed under this program: it is either all or nothing.
Q: Is there an age requirement to qualify?
A: The property owner must be 55 or older at the time the original property is sold in order to qualify. For married couples, only one spouse must be 55 or older.
Q: Can a taxpayer apply for and receive the benefit of Prop 60/90 more than once?
A: No. You are not eligible if you have been previously granted this benefit.
Q: Is there a time limit that applies to this program?
A: You must buy your replacement home within two years of selling your original property in order to qualify.
Q: Must the property be owner-occupied?
A: Both properties must qualify for a homeowner's exemption, which requires that a property be the owner's principal place of residence.
Q: If I live in another California county, can I sell my home there and buy a replacement home in San Diego County, and still qualify for this program?
A: You can move from any county in California to San Diego County and qualify.
Q: If I decide to build my own replacement property, would it qualify under this program?
A: New construction qualifies for this program, but there are specific requirements that must be met. It is recommended that anyone wanting to pursue this option contact the assessor's office first to go over these requirements at (619) 531-5481.
Q: How do I apply?
A: In order to qualify, you must complete and submit the necessary application form within three years of the date you buy your replacement property. You may request an application by calling (619) 531-5481
PROPOSITION 110: FOR SEVERELY DISABLED PERSONS Proposition 110 was adopted on June 5, 1990 to extend Prop 60 to severely disabled persons residing permanently in the property. Also, in existing homes qualified for a homeowner’s exemption, certain construction, modifications, or installations intended to increase accessibility for an owner or an owner’s severely and permanently disabled spouse, are excluded from reappraisal.
Do I also need to be 55 or older to qualify? No. Prop 110 applies regardless of age.
What other conditions must be met? The replacement property must be newly built or purchased on or after June 6, 1990; and The disability must be properly certified; and The claimant must not have previously benefited from a replacement dwelling exclusion. However, an exception applies to successful claimants under Props 60 or 90 who later become severely and permanently disabled: they may qualify again, under Prop 110. (Ref. LTA 97/02, R&T Code §69.5.)
This information was obtained from the San Diego County Tax Assessors website
By Rita Harper, Realtor, SREC
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