In addition, property which has had major renovations is normally subject to property tax reassessment. However, California law exempts certain property improvements from reassessment. More specifically, this memorandum discusses Revenue and Taxation Code Sections 74.3 and 74.6 (dealing with improvements for disabled access), and 74.5 (dealing with seismic retrofitting improvements).
Readers should consult their own professional tax advisors when faced with situations not discussed in this memorandum. This memorandum is general in nature and slightly different facts may produce different results.
Ordinarily under Proposition 13, the value of a home for property tax purposes is re-assessed to market level whenever a change in ownership takes place. This usually results in higher property taxes for the homebuyer.
In November 1988, the state's voters approved Proposition 90, which is designed to induce greater turnover of homes owned by senior citizens. The measure provides anyone over the age of 55 with relief from Proposition 13 by allowing them to move from one county to another without undergoing a change in their basic property taxes.
Proposition 90 is a "local-option" law; each county has the option of participating. If a county has adopted a Proposition 90 ordinance, it accepts transfers of property tax base assessments from other California counties. If the county that the homeowner is moving from does not have a Proposition 90 ordinance, this does not affect the eligibility of the homeowner. Homeowners seeking to transfer their property tax base assessment must verify that the county to which they are moving has a Proposition 90 ordinance.
[Please note: Proposition 60 is a similar law passed by the state's voters two years prior to Proposition 90. It allows seniors to keep their property tax base assessment when they move within the same county. Proposition 60 does not require passage by a local municipality. It is state law.]
For a list of all the California county property tax assessors' offices,
Click here
Get Involved now by contacting PWR if you live in a county that does not have a Proposition 90 ordinance.
If you want to lobby your county board of supervisors to adopt a Proposition 90 ordinance, or extend an existing one, please contact C.A.R.'s public policy division at 213.739.8273 for more information.