Replacement Dwelling Exclusion

Page Contents

• Overview
• Proposition 60/90/110 vs. Proposition 19
• Basic Requirements of Proposition 60
• Basic Requirements of Proposition 110
• Basic Requirements of Proposition 19
• More Information

Propositions 60, 90 and 110 are voter-approved amendments which allow qualifying homeowners to transfer the taxable value of a previous residence to a new residence. For many people, this can result in substantial tax savings. These amendments are effective until March 31, 2021.

Proposition 60, allows qualifying Sonoma County residents who are 55 years of age or older to transfer the base-year value of their original property to a replacement dwelling.

Proposition 90, extends the base-year value transfer provisions of a replacement dwelling located in another county if that county has an ordinance to allow such transfers. Sonoma County does not allow inter-county transfers.

State Board of Equalization's current list of participating counties

Proposition 110, extends the base-year value transfer provisions to disabled persons of any age. In order to qualify, an owner of the property must be severely and permanently disabled.

Effective April 1, 2021, Propositions 60, 90 and 110 will be superseded by Proposition 19, passed by voters in the November 2020 election.

Proposition 19 allows persons who are 55 years of age or older or severely disabled to transfer the base year value of their principal residence anywhere in California within 2 years of the sale of the original property.

Note: The information presented is intended to provide general and summary information about Proposition 19. It is not intended to be a legal interpretation or official guidance or relied upon for any purpose, but is instead a presentation of summary information. If there is a conflict between the information presented and the text of the proposition or its implementation, the text of the proposition or legal interpretation will prevail. It is highly encouraged that you consult an attorney for advice specific to your situation.

Replacement Dwelling 55 Years of Age or Older

1. You or a spouse who resides with you, must be at least 55 years of age when the original property was sold.
2. The replacement property must be your principal residence and must be eligible for a homeowners' exemption or disabled veterans' exemption.
3. The replacement property must be of equal or lesser "current market value" than the original property.
4. The replacement property must be purchased or built within two years (before or after) the sale of the original property. No exceptions.
5. To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
6. Your original property must have been eligible for the homeowners' or disabled veterans' exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.

The original property must be subject to reappraisal at its current market value at the time of sale, unless the buyer(s) or your original property also qualify the property as a replacement property for a base-year value transfer due to disaster relief or a base-year value transfer. Therefore, most transfers between parents and children will not qualify.

This is a One-Time Only Benefit

Once you have filed and received tax relief, neither you nor your spouse who resides with you can ever file again. The only exception is that if you become disabled after receiving this tax relief for age, you may transfer the base-year value a second time because of disability, which involves filing a different claim.

Severely and Permanently Disabled Persons

1. You or a spouse residing with you must be severely and permanently disabled when the original property was either sold or modifications were completed.
2. Both your original and replacement property must be eligible for a homeowners' or disabled veterans' exemption and the replacement property must be your principal residence.
3. The replacement property must be of equal or lesser value than the original property.
4. The replacement property must be purchased or built within two years (before or after) the sale of the original property.
5. To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase or completion of new construction of the replacement property.
6. The disabled person, spouse, or legal guardian must submit a Physician's Certificate of Disability (Form BOE-62A) with the claim.

The original property must be subject to reappraisal at its current market value at the time of sale, unless the buyer(s) or your original property also qualify the property as a replacement property for a base-year value transfer due to disaster relief or a base-year value transfer for persons age 55 or over. Therefore, most transfers between parents and children will not qualify.

This is a One-Time Only Benefit

Once you have filed and received this tax relief, neither you nor your spouse who resides with you will qualify to receive this benefit again.

1. You or a spouse residing with you must be at least 55 years of age or older, or severely disabled when the original property was sold.
2. The replacement property must be your principal residence and must be eligible for a homeowners' exemption or disabled veterans' exemption.
3. The replacement property can be located anywhere in California
4. There is no value limit – any amount over 100% of the value will be added to the transferred value
5. This benefit can be used three times

California State Board of Equalization Website

More about Proposition 60/90 - Replacement Dwelling 55 Years of Age or Older

More about Proposition 110 - Severely and Permanently Disabled Persons

More about Proposition 19