With the support of our local County Leaders, the California Association of Realtors has committed to helping the Baby Boomer population to downsize without a huge property tax burden.
For many under Prop 13, moving is out of the question given their current tax savings.
Laws now only allow persons over the age of 55 to transfer the property tax base year value of their principle residence to a replacement home of equal or lesser value within the same county (Prop. 60) or another county if that county has opted into the program (Prop. 90).
Some of state’s most popular retirement areas have voted not to accept inter-county transfers of property tax values for homeowners 55 or older. This is a major roadblock that keeps Boomers in their homes.
Introducing Senate Bill 378 (Beall) and SCA 9 (Beall) Property Taxation: Base Year Value Transfers.
These bill are sponsored by the California Association of Realtors –and plan to provide if approved: 1) the base year value of a principle residence may be transferred to a replacement home of greater value; and, 2) the base year value of the replacement home to be calculated by adding the difference between the full cash value of the principle residence and the full cash value of the replacement home to the base year value of the principle residence.
To implement these changes that would help Baby Boomers downsize, it is critical that these bills pass and that counties surrounding Alameda County participate in Prop 90. A campaign for change is in order. More to follow…
Murline Monat,REALTOR ® Associate
Paragon Realty Group, Inc