Propositions 60 and 90 allow for a greater turnover of homes among senior citizens. Both propositions exempt homeowners over the age of 55 from Prop 13, which reassess property taxes to the current market level whenever a change in ownership takes place. Prop 60 is used for eligible individuals who move within the same county (intracounty) and Prop 90 is used for eligible individuals who move from one county to another (moving intercounty). You can only receive the benefit of Prop 60/90 once, unless you subsequently become disabled after the date of the original claim and need to move because of disability reasons (e.g. own a 2-story home and now need a single story home).
To be eligible for either Prop 60 or 90 you must fulfill the following criteria.
* You or your spouse must be at least 55 years of age when the original property is sold.
* You must use the replacement property as your primary residence. You cannot use Prop 60/90 with an investment property.
* The replacement property must of equal or lesser current market value than the original property.
* The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
Additionally, if you are moving from one country to another, only certain counties in the state of California, allow you to apply the benefits of Prop 90. You can learn more here.