Tax Saving Propositions
Nothing is certain except death and taxes. Here is California there are a nine tax saving programs that you might qualify for.
1. Two very popular exemptions exist for homeowners over 55 years of age:
Propositions 60 - This measure offers anyone over the age of 55 relief from Prop. 13 by allowing them to move within the same county without undergoing a change in their basic property taxes.
Proposition 90 - The same provisions and qualifications as Proposition 60. The difference is that it allows base year transfers from one county to another county in California. The only counties that have adopted an ordinance to allow values from other counties are: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne and Ventura.
2. The Homeowner’s exemption is available if you owned and occupied your principal place of residence on January 1. If so, $7,000 of your property’s value may be exempt from taxation.
3. Proposition 58 is the Parent-child transfer. This constitutional amendment was approved by the voters of California in 1986 to exclude from reassessment transfers of real property between parents and children.
4. The grandparent-grandchild transfer or Proposition 193 is another constitutional amendment approved by the voters of California in 1996 to exclude from reassessment transfers of real property from grandparents and grandchildren, providing that all the parents of the grandchildren who qualify as children of the grandparents are deceased as of the date of transfer.
5. If you or someone you know is severely and permanently disabled homeowner, Proposition 110 may be helpful. This constitutional amendment was approved by the voters of California in 1990 that allows homeowners who are severely and permanently disabled to transfer an existing Prop. 13 factored base year value to a replacement residence, if certain qualifying conditions are met. Some counties have not adopted local ordinances to implement Prop. 110. Before attempting to transfer your base year value to another county under the provisions of Prop. 110 you should contact the local County Assessor to discuss eligibility.
6. A property tax postponement is available for blind, disabled, or at folks who are at least 62 years of ages and meet certain income restrictions. These folks may defer the payment of property taxes on your house, condominium or mobile home. Under this program, taxes would be paid by the State and the deferred payment would create a lien on the property.
7. Proposition 3 and Proposition 50 are available for properties were substantially damaged by disaster or the property was taken by government action.
Proposition 3 -A constitutional amendment approved by the voters of California in 1982 that allows property owners to transfer the Prop. 13 factored base year value of real property taken by government action to a comparable replacement property located anywhere in California, if certain qualifying conditions are met.
Proposition 50 - Taxpayer’s whose property has been destroyed or damaged in a Governor declared disaster area can transfer the Prop. 13 base year.
If you would like to know more about these tax exemptions, please contact your tax preparer or accountant.