On June 6, 1978 California voters passed Proposition 13, a property tax (Transfer of base year value) limitation initiative.

Under Proposition 13, properties are reassessed to current market value only upon a change in ownership or completion of new construction (called the base year value). If property has not
undergone a change in ownership or new construction, Proposition 13 generally limits annual
increases in the base year value of real property to no more than 2 percent (trended base year
value) and it limits the property tax (Transfer of Base Year Value) rate to 1% of the assessed value,  plus the rate necessary to fund local voter-approved bonds.

An unintended consequence of Proposition 13 discouraged some people from changing their
residence as their family circumstances changed. In response, on November 1986, California
voters passed Proposition 60 which enacted the provisions of Revenue and Taxation Code
Section 69.5. Proposition 60 provide that any person over the age of 55, or any severely and
permanently disabled person, may transfer the trended base value. Qualified homeowner may transfer the base value from a primary residence that
was sold to a replacement primary residence of equal or lesser value. Subject to certain
conditions and limitations. This benefit may result in substantial tax savings.


This is a one-time only benefit (except if severely and permanently disabled) . To qualify, a
claim for base year value transfer must be filed with the Assessor’s Office.

The eligibility requirements of Section 69.5 are

– The original and replacement properties must both be in Santa Barbara County. (see Proposition 90 section for transfers to other counties)

-You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.

– Your original property must be your principal residence eligible for the homeowners’ or disabled veterans’ exemption either at the time of sale or within two years of the purchase or construction of the replacement property.

– The replacement property must be your principal residence and must be eligible for the homeowners’ exemption or disabled veterans’ exemption.

– Replacement property must be of equal or lesser “current market value” than the original property (subject to certain conditions).

 – Applicant must purchase or build the replacing property  within two years (before or after) of the sale of the original property.

 -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.

 Other conditions and limitations may apply. Proposition 60 legal reference may be found in the Revenue & Taxation Code Section 69.5 on the Board of Equalization Website at

Click Here

*** How Much My Home Is Worth ***


Proposition 90 allows transfers from one county to another county in California and it is the discretion of each county to authorize such transfers by local ordinance. Santa
Barbara County does not currently accept base year value transfers from other counties. It is
recommended that you contact the county to which you wish to move to verify eligibility. For a
current list of counties with approved local ordinances, visit the Board of Equalization website at:

Click here


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