Orange County Prop 60 and 90 FAQs

Common Prop 60 and 90 FAQs for Costa Mesa Real Estate

I hope you are enjoying some of our posts related to our seniors here in Costa Mesa. Yes, the topics might be a little boring, but we will all be there before too long ;)!

Check the FAQs! There are lots of questions around prop 60 and prop 90, but when done right, it is a great deal to be able to transfer an inexpensive tax base.

I wanted to continue the discussion from our last post on Prop 60 and Prop 90 with some common questions and answers that always seem to pop up for those considering these propositions for decisions. I found these questions on a bunch of different blog sources, and these seem to be the common theme. If you have a question, be sure to use our bottom “speak your mind” and we can answer other questions. Here are the Orange County Prop 60 and 90 FAQs:

Q: Is it true that only one claimant out of several co-owners of a replacement home in Costa Mesa must be 55 or older?

A: Yes. Only one claimant/occupant must be 55 or older.

Q: Can a taxpayer apply for and receive the benefit of Propostition 60 numerous times during the course of his lifetime?

A: No. Only claimants who have not been granted this previously are eligible for the one-time event.

Q: If the current full cash value of my replacement dwelling slightly exceeds the “equal or lesser value” test as compared to the full market value of my Costa Mesa real estate, can I receive partial benefit.

A: No. Unless the replacement dwelling satisfies the “equal or lesser” test, no benefit is available.

Q: Can two otherwise qualified taxpayers who recently sold their separately owned Costa Mesa real estate properties combine their claim for Proposition 60 benefit when the buy a home together?

A: No. They can only qualify if one or the other qualifies separately.

 

Q: May I give my original property to my son/daughter and still receive the Proposition 60 benefit when I purchase a replacement property?

A: No. The law provides that you must sell your original property for consideration and subject to full reappraisal at time of sale. Original property that has been gifted or transferred to a child does not apply.

Q: After receiving the notice that my application has been granted, do I still need to pay both installments of the secured tax bill at the higher value?

A: Yes. All of the reduction in value will be refunded in the form of a negative supplemental.

 

Ouch! There were a lot of “no’s” there as I read back. Well, it is a governmental program and they aren’t fond of NOT collecting real estate taxes, right? Other Prop 60 questions can be found on the assessor’s website.

Please ask other questions below, or if you need help feel free to reach out to me at (714) 743-9882 or e-mail me.

I’ve helped two Costa Mesa real estate sellers through these questions and had success with Prop 60 in both circumstances.