Real Estate News

How to make a move… without increasing your property taxes!

temp-post-image

Many homeowners who have lived in their home for years and years have a low property tax bill. However when they move and buy a new home, their property tax bill will mostly likely go up based on the value of their new home, right? Not always! If you are thinking about making a move, but are concerned about paying more in property taxes, there may be an option for you.

If you are 55 or over, you can put California Propositions 60 or 90 to work for you! You may be eligible for a one-time tax benefit that allows you to move within your current county or to another participating county and pay new property taxes based on your old home’s value!

Here are some commonly asked questions:

Question: Do I have to purchase a new home immediately after the sale of my home to qualify?

Answer: No. The program allows homeowners up to two years to take advantage of this tax savings program.

Question: Does the new home have to be less expensive than the home I sell?

Answer: Yes and no. If you purchase a new home at the same time you sell your old home, the new home must be less expensive (by a dollar or more!) If you purchase a new home within the first year, you are eligible to purchase a home up to 5% higher than your old home sale’s price. If you purchase between years 1 and 2, you are entitled to purchase up to 10% higher.

Question: Is this a one-time benefit?

Answer: Yes. Each situation is unique, and you should contact your tax advisor about your personal situation.

For more information about California Propositions 60 & 90, please contact your County Tax Assessor’s Office.