California Property Tax Exemptions

The majority of people who live in or near California have heard the term Prop 13 at some time or another.  Prop 13 caps increases in property taxes if the property owner meets certain requirements.  A somewhat less known law in California is Prop 60 and Prop 90 (sometimes referred to as Prop 60/90), which amended the California Constitution.  This exemption allows a resident that is 55 or older, in certain circumstances, to sell his/her property and replace it with another while maintaining the Prop 13 tax basis on the original property.  There are many restrictions and rules to using Prop 60/90, some of which are discussed below.

To qualify for
Prop 60/90, the resident must be over the age of 55 or a severely and permanently disabled person.  Next, the replacement dwelling must be of equal or lesser value and be purchased within two years of the sale of the original property.  In most circumstances, this exemption may only be used once.

Ten counties have adopted ordinances that allow residents to take advantage of Prop 60/90 even when relocating to/from other counties.  However, if your property is not located in one of these counties the replacement property must be in the same county as the original property. There are other requirements that must be met under Prop 60/90 but this law can be a great way for someone to relocate while maintaining their property tax basis.  This allows for mobility of many seasoned Californians looking to downsize.  If you would like to learn more about this property tax exemption and whether you qualify, do not hesitate to contact our office.

Jeremy Krenek

Jeremy L. Krenek is an attorney at the Incline Law Group, LLP. Incline Law Group, LLP - Providing Legal Clarity for Over 40 Years. Incline Law Group, LLP, is committed to providing legal clarity. Our transparent approach to delivering legal services is designed to get beneath the surface of the matter in order to minimize surprises and maximize our clients’ outcomes. Founded in 1973 by John C. Rogers, Incline Law Group has earned a reputation for professionalism, discretion, honesty, diligence and positive results. Our attorneys are licensed in Nevada and California and have been providing legal clarity in the areas of Real Estate, Litigation, Family Law, Contracts, Business Formation and Estate Planning for over 40 years to our Northern Nevada and California communities. Licensed in both California and Nevada, Jeremy’s practice focuses on general business and real estate law, family law, litigation and sports law. A Texas native, Jeremy graduated with honors from Texas State University. After initially working in sales, Jeremy and his wife Kelli moved to Incline Village and spent a winter working at the Diamond Peak ski area as snowboard and ski instructors. Determined to become full-time residents, they both returned to school; Kelli attended nursing school while Jeremy entered Santa Clara University School of Law. During his final year of law school, Jeremy competed in multiple Honors Moot Court competitions with stellar results. Jeremy remains a dedicated snowboarder, and can be found most weekend winter mornings tearing up the slopes. In the summer, you'll find Jeremy on his mountain bike, four-wheeling in his Jeep or wake boarding on Lake Tahoe.

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