If you are over 55 years old, you can take advantage of Proposition 90 which allows you to use your old property tax base when you purchase a new property of equal or lesser value.

Alameda County is one of the few counties in California that adopted Proposition 90. Let’s say you purchased your home a number of years ago, but you now feel that your home is too big and you would like to buy a smaller property that would allow you more time to travel. If you are over 55 years of age, Proposition 90 allows you to transfer your old tax base to your new property. For instance, Joe and Mary purchased their property many years ago for $300,000. They are paying around $4000 per year in property taxes. That current home is worth $1,200,000, and they would like to buy a small home for $700,000. Instead of paying a tax bill to Alameda County of $8,400 per year, they would pay a tax bill based on their old property, a savings of about $4,400 per year.

Proposition 90 is only in effect for those in Alameda County and a few other Counties in California. It is not available in Contra Costa County. There is a $200 application charge for county paperwork, and, as always, it is a good idea to check with the Alameda County Assessor’s Department to make sure you qualify for this property tax relief.

Among the Northern California Counties that you can move to and take your tax basis are Santa Clara and San Mateo. A homeowner is also eligible if they are moving from a county that has not adopted Proposition 90 to a county such as Alameda that has adopted Proposition 90.

Please call 925-368-3449 or email Vintage Realty if you have any further questions.