Real Estate
California Homeowners Over 55 Can Keep Property Taxes Low When Downsizing
Long-time owners of personal residences in California have benefited greatly from property taxes based on assessed values far below current market values. When those owners (or either spouse of a married couple) reach age 55, an impediment to moving to another residence may disappear. If the conditions listed below are met, those owners can continue to pay property taxes based on the same assessed value even if they move.
In addition to the age requirement, these conditions must be met:
- The new home must be of equal or lesser value than the original home.
- If the new home is not in the same county as the original home, the new home must be in Alameda, Kern, Los Angeles, Modoc, Monterey, Orange, San Diego, San Mateo, Santa Clara, or Ventura County (this list may change, so it is important to confirm a county's participation).
- The owner of record must be the same for the original and the new home.
- This technique can only be used once during the owner's lifetime.
Another benefit for which these owners are eligible (no age requirement) is a reassessment exclusion for parent-to-child and grandparent-to-grandchild ownership transfers. Criteria for a reappraisal exclusion include:
- Residence must be a principal residence of the transferring person
- There must be an eligible date of transfer
- Satisfaction of the legal relationship requirement (child, or if deceased, grandchild)
There is no limit to the number of transfers of principal residences in this latter instance, but each principal residence must qualify as such. Also worth noting, the residence need not become the principal residence of the transferee(s).