PROPOSITION 60


Proposition 60 offers an important savings to you.  This proposition
allows you, should you meet certain requirements, to transfer the current assessed value of the property you are selling to the property you are purchasing for tax assessment purposes.  Therefore, you will not be reassessed on the actual sales price of the home.  Instead your assessment will be based on the current assessment of the home being sold.  The restrictions you must meet in order to qualify for the tax relief are as follows:

1.  Both homes must be in the same county

2.  Taxpayer must be 55 years of age or older

3.  Taxpayer must purchase or complete construction of the new home within 2 years of selling former residence

4.  Within the 1st year, the sales price of the home being purchased
cannot exceed the sales price plus 5% of the home being sold; within the 2nd year the sales price of the home being purchased cannot exceed the sales price plus 10% of the home being sold.

5.  Taxpayer has 3 years from date of purchase of new home to file for
this transfer.  The county will then readjust taxpayer’s previous bills; therefore, if you were not aware of the above proposition it may not be too late to apply.


EXAMPLE:  Seller’s assessment on his property in 1990 was $80,000.  Seller sells his property in 1990 for $130,000.  He purchases a new home, also in 1990, for $136,500.  He meets all of the requirements and is approved by the county for tax relief.  His base assessment for the new home for tax purposes would be $80,000 plus any special assessments, if applicable.

At the time you purchase your home and complete your change of ownership report, make sure you respond “yes” to the question which asks, “is this transaction to replace a principal residence located in Sacramento County by a person 55 years of age or older.”  The County will then send out a form for you to complete which needs to be filed with the assessor’s office for application of relief of taxes.  If you do not receive the form within 45 days, you should contact the Sacramento County Assessor’s Office at 440-5899 to obtain said form.