What Los Angeles Homeowners Over 55 Should Know About Propositions 60, 90, and Property Tax Transfers
If you’re a homeowner in Los Angeles County over the age of 55 and thinking about selling your home, you may be eligible for a significant property tax break when buying your next one. California’s Propositions 60 and 90 were designed to help long-time homeowners avoid a large increase in property taxes when moving to a new primary residence. While these propositions have now been replaced by Proposition 19, the older rules still apply in certain cases—and understanding the evolution can help you make the best financial decision.
Here’s what you need to know, especially if you’re planning a move in or around Los Angeles.
🔍 What Did Propositions 60 and 90 Do?
Under California law, property taxes are based on your home’s assessed value, which is typically set at the time of purchase. Thanks to Proposition 13, those taxes increase only slightly each year. So if you’ve owned your home for decades, your tax bill may be far below what you’d pay if you bought a similarly priced home today.
Propositions 60 and 90 were passed to help homeowners over 55 carry their low tax base with them when they move.
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Prop 60 allowed transfers of property tax assessments within the same county—for example, selling a home in Los Feliz and buying a condo in Santa Monica.
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Prop 90 extended that benefit across counties, but only if both counties participated. Los Angeles was one of the counties that opted in, so homeowners here had more flexibility.
Value Limit Nuance:
For Props 60/90, the “equal or lesser value” rule had specific percentages based on timing:
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If you purchased the replacement property before selling the original, it had to be 100% or less of the original’s value.
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If you purchased within one year after the sale, up to 105%.
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If you purchased within the second year, up to 110%.
✅ Who Qualified Under Prop 60 and 90?
To use the benefit under Prop 60 or 90, the following had to be true:
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At least one homeowner had to be 55 years or older at the time of sale. For married couples, only one spouse needed to meet the age requirement.
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The home sold and the replacement home had to be the primary residence.
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The new home had to be of equal or lesser value, as detailed above.
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The new home had to be purchased within two years of the original sale.
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The benefit could be used only once in a lifetime.
In Los Angeles County, both Prop 60 and 90 were accepted prior to 2021. If your move occurred before April 1, 2021, and you met the above conditions, your property tax base could be transferred under those rules.
🔄 Enter Proposition 19: New Rules for 55+ Homeowners
As of April 1, 2021, Proposition 19 replaced Props 60 and 90 statewide. The good news? It made things more flexible.
If you’re 55 or older and planning a move now (or anytime after April 2021), Prop 19 allows:
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Transfers to any county in California—not just those that opted in.
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Purchases of higher-value homes, with a partial adjustment to your property tax base. If the replacement property’s market value is greater than the original, the difference is added to your transferred base year value.
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Up to three transfers, instead of just one.
Prop 19 Retroactivity:
Prop 19 is not retroactive; only transfers where the sale or purchase occurs on or after April 1, 2021, are eligible under the new rules.
This is especially helpful in Los Angeles, where rising home values often make it difficult for longtime owners to move without facing a major tax hike.
📍 Real-World Example (Los Angeles)
Let’s say you’ve lived in a Hancock Park home for 30 years and are now ready to downsize to a townhouse in Culver City. Your current tax bill is based on what you paid in the 1990s, and buying a new home at today’s prices would normally mean a huge jump in annual taxes.
Under Prop 19, you can transfer your original tax base to the new home—even if the new home is more expensive (with some adjustments as described above). That could save you thousands of dollars per year.
🧾 What You Should Do Next
If you’re over 55 and considering selling your Los Angeles home, talk to me, a qualified real estate agent and your tax advisor before making a move. The timing, price, and location of your next home can all impact how much you save.
Also, be aware:
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The Los Angeles County Assessor’s Office handles all applications for base year value transfers.
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You must apply within three years of purchasing the replacement home (not just after the sale; earlier is better).
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Required documentation includes copies of grant deeds, property tax bills, and proof of age.
Final Thoughts
Whether you’re planning to downsize, relocate within Los Angeles, or move to another part of California, Proposition 19 gives you more flexibility than ever before. But if you sold your home before April 1, 2021, Propositions 60 and 90 may still apply—especially in Los Angeles County, where both were accepted.
In either case, transferring your tax base can be one of the smartest financial moves available to longtime homeowners. Just make sure you understand the rules and timelines—and get professional tax guidance before you make any decisions.