Propositions 60 and 90 allow a seller over the age of 55 an opportunity to transfer the property tax base from a house they have owned for many years to a smaller less expensive house.

Proposition 13 stipulates that a person’s property tax base is based on the  price they paid for that property.  Because home values have appreciated significantly in the Bay Area over the past 30 years,  older people who have owned their home for a long time and want to downsize,  may have to pay more property tax on a new property than they pay on the property they are selling.  For individuals on a fixed income the increase in property tax could be problematic.  Propositions 60 and 90 provide a one-time exemption only. There are a few criteria that must be met to be able to take advantage of these propositions.

• The claimant and/or claimant's spouse or any co-owner must not previously have been granted the property tax relief through these propositions.
• The claimant must be at least 55 years of age
• The replacement home must be the same or lesser value based on sales price
• The replacement property must be purchased within two years of the sale of the original property
• The replacement property must be in the same county as the original property or in a county that is willing to accept the transfer of tax base.