PLACERVILLE, CALIFORNIA

Real Estate

Message from the president: Live the good life

By From page HS5 | June 21, 2013

With its diverse foothill beauty, central location & rich history, El Dorado County continues to be a destination for Californians who are looking for the slower pace of rural living & a place to enjoy the best years of their lives – retirement!

History of Proposition 90
A constitutional amendment passed in 1988 was adopted by the El Dorado County Board of Supervisors in December of 2009 and became effective in 2010. Prop 90 was written for homeowners over the age of 55, to make it possible to move to a different home in a different county in California and not suffer an increase in their property tax base. Proposition 110 is a companion to Prop 90 with the same provisions, but designed for those who are severely and permanently disabled with no age limit requirement. Proposition 60 allows anyone who meets the requirements to transfer the base year value from an original residence to a replacement residence within the county. We are one of 8 counties participating in this tax-savings program.

Proposition 90 provides homeowners who meet the requirements, to transfer the base year value from an original residence in any other county to a replacement residence in another county, providing the “gaining” county passed an ordinance authorizing the transfer.  El Dorado County is the only rural county to adopt Prop 90.

Generally, the requirements are that one of the property owners must be 55 (Prop 60/90) or permanently disabled (prop 110).  The original residence must have qualified for either a Homeowner’s or a Disabled Veterans exemption and the sale of the original principal residence & the acquisition of the replacement principal must both occur within a two year period. In addition, the market value of the replacement principal residence must be equal to or less than:

  • 100% of the full cash value of the original property, as of the date of sale, if the replacement dwelling is purchased or newly constructed prior to the date of sale of the original property.
  • 105% of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the first year following the date of the sale of the original property.
  • 110% of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the second year following the date of the sale of the original property.

The application is filed with the Assessor. For Prop 90 or Prop 110 transfers from another county, a $500 fee must be paid to the Assessor at the time the application is filed. The Assessor’s office position is not to accept an application fee unless they are highly confident that a base year value will qualify for transfer. Prop 60 & 110 applications for transfers within El Dorado County do not require a fee.

New construction may be added to a property and qualify for exclusion under Proposition 90.  The construction must meet these conditions:

  • Be completed within 2 years of the sale of the original property.
  • The full cash value of the new construction of the date of completion plus the full cash value of the replacement dwelling on the date of acquisition must be equal to or less than the full cash value of the original property.
  • The Assessor must be notified in writing within 6 months of the completion of the new construction.

This tax base savings opportunity expires in 2015. So far, the Assessor’s office only sees about 50-60 applications per year.  Please spread the word to ensure the success of this program so it will be considered for renewal by our Board of Supervisors.

Visit the Assessor’s web site for more detailed information: http/www.edcgov.us/assessor or contact Assessor, Karl Weiland at (530) 621-5757 for questions or assistance.

 

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