RE property tax

 

CA property tax law for people over 55 . Question.?

In California, after you pass 55 year old, when you sell you old house and buy another house and claim this new house as your primary resident then you can pay the same property tax rate of your old house on the another/new house.

For example: I bought my old house long time ago at the price of 200K then my property tax is 2k/year (1% of the property price).
- When I am 54 year old, I sold my old house and buy another house at the price of 500K, then my property tax will be 5K/year (1%).
- When I am over 55 year old, I sold my old house and buy another house at the price of 500K, then my property tax will NOT be 5K/year but only 2K/year. Because I am over 55 so I can carry over the old property tax.

Now the question is: What happend if at 54 , I move to another state , let's say Washington and become the resident of this state for two years. Then at 56 I come back to California. Then does the property tax law above still apply to me ?????

Best Answer

I am not an expert in this field, but let me get the discussion on track. This is not Prop 13, it is Prop 60 and Prop 90. Under either one, the availability of the law depends upon the sale of the old residence (not the purchase of the new residence) being made after you (or your spouse) is 55. The new residence must be of equal or lesser value (which allows for a slight increase if the purchase is delayed), and the purchase must be made within two years of the sale of the old residence. Under Prop 60, the purchase must be in the same county. Under Prop 90 it can be in a different county, but only if that county has approved the application of the law there.

I don't see what leaving CA and coming back has to do with it. Of course, if you sold at age 54, the law would not apply. If you held on to the CA property while in WA, it would if you sold after age 55.

Source(s):

This is the info from the Orange County assessor
http://www.oc.ca.gov/assessor/FAQprop60.…

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