Pixel Tracker

Sunday, January 20 , 2019, 11:37 am | Fair 62º


Ruben Lopez: Dispelling Some of the Myths About Proposition 60

The law lets homeowners age 55 or older transfer their property tax basis, but how does it work?

For some homeowners looking to downsize, Proposition 60 can provide instant, significant savings.

The law allows homeowners age 55 or older to transfer their existing property tax basis to a new home of equal or lesser value. The following is a quick Q&A to help homeowners dispel some of the myths about Proposition 60 and to understand exactly how the law works.

Myth No.1: All co-owners of a replacement dwelling need be at least age 55 as of the date of sale of an original property.

The truth is that only one claimant out of several co-owners of a replacement dwelling needs to be 55 as of the date of the sale of the original property. But the claimant must be an owner of record, and either the claimant or their spouse also must have been an occupant of the original property.

Myth No. 2: A taxpayer may apply for and receive the benefit of Proposition 60 more than once.

Not true. You are not eligible if you have been previously granted this benefit.

Myth No. 3: I can’t receive the Proposition 60 base-year transfer if my claim is filed more than three years after purchasing or constructing my replacement property.

Actually, as of Jan. 1, 2007, the assessor is allowed to grant late-filed Propositions 60/90/110 base-year transfers on a prospective basis only if all other requirements of section 69.5 are met and the replacement property has not been transferred to a third party. The effective date of the base-year value transfer would be the lien date of the assessment year in which the claim is filed.

Myth No. 4: My replacement property must always be valued less than my original property.

In fact, the replacement property’s market value can exceed the value of the original property. In general, “equal or lesser value” means:

» 100 percent of the market value of an original property if a replacement dwelling is purchased before the original property is sold, or

» 105 percent of the market value of an original property if a replacement dwelling is purchased within one year after the sale of the original property, or

» 110 percent of the market value of an original property if a replacement dwelling is purchased within the second year after the sale of the original property.

Learn more about transferring property taxes through Proposition 60 at a seminar at 5 p.m. Thursday at the Goleta Public Library, 500 N. Fairview Ave. Joe Holland, Santa Barbara County clerk, recorder and assessor, will be the featured speaker. RSVP to 805.961.2733 or .(JavaScript must be enabled to view this email address).

— Ruben Lopez of Prospect Mortgage is a public-relations coordinator for the Santa Barbara Association of Realtors.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made using a credit card, Apple Pay or Google Pay, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Select your monthly membership
Or choose an annual membership

Payment Information

Membership Subscription

You are enrolling in . Thank you for joining the Hawks Club.

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.
You may cancel your membership at any time by sending an email to .(JavaScript must be enabled to view this email address).

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.