If you’re over 55, you might be aware of Prop 60 which allows you to take your current real estate taxes with you when you move to a less expensive home. Prop 90 allows you to take those same taxes from one county to another, but only those counties that have approved it. Up til last week, Riverside County was not on that list, but now it is!
This is huge! It means that if you live in LA, Orange or San Diego Counties. you can now sell that expensive home and buy one for much less in Temecula or Palm springs or Idyllwild and still keep your current real estate taxes.
I’ve talked with many people who want to downsize and use some of the “dead equity” in their homes to fund a nice retirement, but didn’t make the move to Riverside County once they found out their real estate taxes would go way up. But now you can live in the desert, the mountains, or any of the beautiful 55+ communities in Riverside County and still keep your tax base.
According the California State Board of Equalization, the requirements to use Proposition 90 are as follows:
- You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
- The replacement property must be your principal residence and must be eligible for the homeowners’ exemption or disabled veterans’ exemption.
- The replacement property must be of equal or lesser “current market value” than the original property. The “equal or lesser” test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.
- The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
This is great news! You now have more retirement options than ever before. Feel free to contact me if you’d like to explore the many low cost lifestyles that Riverside County has to offer.