After 25 years of repeated attempts, the San Bernardino County Board of Supervisors in October unanimously adopted Proposition 90.

The ordinance that enables homeowners 55 years or older to transfer the base year value of their principal residence in one county to a newly purchased residence in another county, provided that certain requirements are met.

San Bernardino County had been reluctant to opt in to Prop 90 over concerns of declining property tax revenues, but a county-commissioned study determined that the ancillary benefits of such an ordinance by attracting an economically stable class of home buyers clearly outweighed the marginal negative impacts.

10 counties participate SB County now joins nine other California counties that participate in the voluntary Proposition 90 program.

Under Proposition 13, the legendary property tax initiative passed by voters in 1978, property taxes are reassessed to market value or the sales price whenever a change in ownership takes place.

California Proposition 90 provides for the transfer of a property’s base year value from an existing residence to a replacement residence for qualified persons over the age of 55 or persons of any age who are severely and permanently disabled.

It can offer substantial savings for homeowners who have lived in their properties for many years and enjoy low property taxes, allowing them to purchase without the risk of reassessment to a much higher tax bill.

Prop 90 was passed to help seniors who may move to smaller more manageable properties, and can only be used once by an individual or married couple.

Here are the rules The rules for eligibility are as follows:

As of the date of transfer of the original property, the seller or a spouse residing with the transferor must be at least 55 years of age or be severely or permanently disabled.

At the time of sale the property must be the owner’s principal residence and eligible for the Homeowners Exemption, or entitled to the Disabled Veteran’s Exemption.

The replacement property must be of equal or lesser value than the original property, and acquired or newly constructed within two years before or after the sale of the original property.

The rule actually allows the replacement property to be 105% of market value of the original property if the replacement dwelling is purchased within one year after the date of sale, and up to 110% of market value if purchased within the second year after sale. Claims must be filed within three years of purchase.

The following nine counties in California currently have an ordinance enabling the inter-county base year value transfer: Alameda, El Dorado, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, Riverside and Ventura.

If you are scouting out places in the Southern California area to kick up your heels and relax, retirement sites have just been expanded to some very attractive SoCal locations.

Give me a call if you’re interested in more information on the transfer of property taxes.

You can also visit www.boe.ca.gov/ proptaxes.

Adriana Donofrio Podley Properties Glendora 626 914-2904 adrianad@podley.com