- Description
- FAQ
- Forms/Attachments
ALERT: In November 2020,California voters passed Proposition 19, which makes changes to property tax benefits for seniors (effective April 1, 2021). Please visit theProposition 19 resource pagefor more information.
On November 4, 1986, the voters of California passed Proposition 60 to provide qualified homeowners the transfer of the base-year value of their principal residence to a replacement dwelling located in the same county, under certain circ*mstances.
Qualification Requirements:
- On the date of the transfer of the original property, the transferor (seller) must be at least 55 years of age. If the transferor is married, only one spouse must be at least 55.
- The original property must be the claimant’s principal residence. If an original property is a multi-unit dwelling, each unit shall be considered a separate original property.
Eligibility Requirements:
- The replacement dwelling must be purchased or newly constructed within 2 years of the sale of the original property.
- The original property must be subject to reappraisal at its current fair market value.
- The claim form must be filed within 3 years of the date a replacement dwelling is purchased or new construction of that replacement dwelling is completed. If the claim if filed after 3 years, relief will be granted beginning with the calendar year in which you file the claim.
If you sold the original property to your parent, child, or grandchild and that person filed a claim for the parent-child or grandparent-grandchild change in ownership exclusion, then you may not transfer your base year value under section 69.5.
Definition of Equal or Lesser Value:
- In general, equal or lesser value means the fair market value of a replacement property on the date of purchase or completion of construction does not exceed
- 100 percent of market value of original property as of its date of sale if a replacement dwelling is purchased before an original property is sold;
- 105 percent of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property;
- 110 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within the second year after the sale of the original property.
If the original property was substantially damaged or destroyed by misfortune or calamity (not a Governor-declared disaster) and sold in its damaged state, the fair market value of the property immediately preceding the damage or destruction is used for purposes of the equal or lesser value test. A property is "substantially damaged or destroyed" if either land or improvements sustain physical damage amounting to more than 50 percent of its full cash value immediately prior to the misfortune or calamity.
Filing Requirements:
- Complete the claim form BOE-60-AH, Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling.
- Provide evidence of at least 55 years of Age.
- Disclosure of social security number by all claimants.
How do I know if I qualify for Proposition 60?
To qualify for the Prop 60 tax base transfer:
- The claimant or claimant’s spouse must be age 55 or older when the original residence is sold.
- The market value of the replacement residence must be equal or less than the market value of the residence sold.
- The replacement residence must be purchased within two years either before or after the current residence is sold.
What is “equal or lesser” value mean?
In general, equal or lesser value means that the fair market value of a replacement property on the date of purchase or completion of construction does not exceed 100 percent of market value of original property as of its date of sale if a replacement dwelling is purchased before an original property is sold; 105 percent of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property; 110 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within the second year after the sale of the original property.
Will I still qualify for Proposition 60 benefits if I was a few months shy of 55 when my property sold, but over 55 when I purchased my replacement property?
No, you must be at least 55 when your original property sells. While you may be 54 when you purchase your replacement property, you must be at least 55 when you sell your original property.
Is it true that only one claimant, out of several co-owners of a replacement dwelling, must be at least age 55 as of the date of the sale of an original property in order to qualify?
Yes. Only one claimant/occupant (or his/her spouse who was also an occupant) who was a qualified record owner of the original property must be at least 55 years of age.
If my wife and I own the property together, when I reached age 55, we were granted the Proposition 60 benefit, now my wife is age 55, can we apply for the Proposition 60 benefit again?
No. Your wife was considered a claimant when you applied and granted the benefit. Therefore, she cannot apply again.
How many times can I receive the benefit of Proposition 60 exclusion?
Once. A claimant who has not previously been granted this property benefit is eligible.
If I received Proposition 110, Disabled Person(s) Claim for Transfer of Base Year Value to Replacement Dwelling, can I now apply for Proposition 60, Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling?
No. However, you can be granted a Proposition 60 transfer of base year value for claimant who is at least 55 years of age and then be granted a Proposition 110 transfer of base year value for disabled claimant.
If the current full cash value of my replacement dwelling slightly exceeds the “equal or lesser value” test as compared to the full market value of my original property, can I receive partial benefit?
No. Unless the replacement dwelling satisfies the “equal or lesser value” test, no benefit is available.
I purchased three units in a six-unit building and I intend to use all three as my principal place of residence. Can I transfer the base year value to all three units?
The transfer would be granted only if physical construction is undertaken to convert multiple units into a single merged unit. The construction must be completed within two years of the sale of the original property. In addition to a traditional single family residence, the original or replacement property may be a single unit in a cooperative housing corporation, a community apartment project, a condominium project, or a planned unit development.
Isn’t the assessor precluded under Proposition 60 from issuing supplemental assessments when the factored base-year value is transferred from an original property to a replacement dwelling?
No. When the replacement dwelling is purchased or newly constructed, the assessor is mandated by law to issue supplemental assessments (positive or negative) for all transactions that result in a base-year value change, including those that qualify under Proposition 60.This is accomplished by comparing the factored base-year value of the original property to the factored base-year value of the replacement dwelling property.
After receiving the notice that my application has been granted, do I still need to pay both installments of the secured tax bill at the higher value?
Yes. Any reduction in value will be refunded in the form of a negative supplemental. Please be aware that the refund may not arrive before the second installment of the secured tax bill is due. No adjustments are made to the secured tax bill to reflect the Proposition 60 exclusion.
Is it true that a replacement dwelling may be acquired any time within two years (before or after) of the date of sale of the original property?
Yes, provided the replacement dwelling is acquired on or after November 6, 1986.
If a lot is purchased and a home constructed, must the new construction be completed within two years of the purchase of the lot?
No. The replacement lot may be purchased any time before the sale of the original property; however, the new construction of the residence must be completed within two years of the sale of the original property.
A few years ago I inherited a residence from my mother. I filed for and received the parent-child exclusion. In a couple years after I turn age 55, can I sell this property and transfer my mother’s base year value to another property that I purchase?
Yes, as long as you have moved into the inherited residence and live in it as your primary place of residence. If you are over age 55, you may sell your primary residence, buy another residence, and transfer the base year value as long as all the other requirements (timing, value, residency, timely filed claim) are met. It does not matter how you acquired your original property.
May I give my original property to my son/daughter and still receive the Proposition 60 benefit when I purchase a replacement property?
No. The law provides that an original property must be sold for consideration and subject to reappraisal at full market value at the time of sale. Original property transferred to a child or disposed of by gift or devise does not qualify.
Can I transfer my original property tax base from a property located outside of San Francisco County?
No. Transfers between counties (Proposition 90) are allowed only if the county in which the replacement dwelling is located has passed an authorizing ordinance. San Francisco County does not have this ordinance. Therefore, San Francisco County only accepts properties sold in San Francisco and replacement properties purchased in San Francisco.
I still have questions about Proposition 60. Where can I find more information?
If you still have questions about Proposition 60, please call the San Francisco Assessor’s Office at 415-554-5596 for more information.
