El Dorado County’s PROP 60/90 now allows homeowners the chance to buy a replacement home while still preserving their original lower base year. PROP 60 means you will be taxed on the original property’s value despite acquiring a new home and being subject to a re-assessment.
Sometimes known as the “Empty Nester” provision, it allows residents to relocate without the consequences of losing their older base value. The provision also extends to the permanently disabled as PROP 110 offers similar benefits. Disabled Vets are also included as one of the qualifying groups.
Ordinances like Prop 60/90/110 are meant to enhance the lives of those who are able to take advantage of their benefits. As we age, our needs may change, causing us to have to relocate to meet our new lifestyle or health needs. It’s great to know that residents of El Dorado County can now do so without being penalized.
To Qualify, Residents Must Meet The Following Requirements:
- One of the property owners must be at least 55 years old or be permanently disabled.
- The original residence must have a qualifying Homeowner’s Exemption or Disabled Vet Exemption.
- The sale of the original residence and the purchase of the replacement residence must both occur within a two-year period at/or below the fair market value.
- New construction homes may qualify if certain conditions are met.
- Lastly, you must apply for the transfer and pay any applicable fees. Currently, applications for transfers within the county of El Dorado will not be charged a fee.
There are many benefits to Prop 60/90, but this ordinance was written to include little flexibility when applied, and must be done so correctly. Common mistakes include acquiring the replacement residence first, going above the fair market value, or simply not meeting the age and residence requirements.
This ordinance may also be moved into neighboring counties, provided that county has passed an ordinance allowing the transfer. Preserving your base year will undoubtedly become a valuable asset come tax time and for years to come. So, if you ever wanted to relocate to a newer home, now is the time.
For further information, please reach out to the El Dorado County Assessor or Realtor Cynthia Mittleider at (916) 337-4989. Contact Cynthia
Disclaimer: Agent is not a county representative and is not giving legal advice. Information is deemed reliable but has not been verified.