More SFBA RE Scams: You thought Prop 13 is bad, how about Prop 60/90/110?
2011 Oct 17, 6:43pm 2,865 views 7 comments
Comments 1 - 3 of 7 Next » Last » Search these comments
wow, ptiemann, you must be a true RE investor if you cannot find fault with this.
That's unbelievable.
Overall I cannot find a fault with this regulation.
probably because you're not thinking.
LarryPatrickMaloney
@
2011 Oct 18, 3:20am
Look, this law does not allow someone to upgrade from a 1-BR studio to a 6-BR mansion. I was told that the properties need to be similar, or the new one has to be SMALLER (the idea is that old people want to down size).
They need to be in the same county.
Overall, the total tax paid stays the same.
If the owner stays in his old house, he pays the low property tax.
If he sells the old house to an unrelated buyer, that unrelated buyer pays market value and the old house now brings in the full property tax.
I think the issue is not the transfer, but proposition 13.
You were told? You can't bother reading the link I provided, so you can think for yourself?
Currently, each of the following seven counties has an ordinance implementing the intercounty base year value transfer provisions of section 69.5 of the Revenue and Taxation Code (Proposition 90):
| Alameda | Orange | San Mateo | Ventura |
| Los Angeles | San Diego | Santa Clara | Â |
If the replacement property is in a different county than the original property, only the replacement property (not the original property) must be located in one of these seven counties. If a county has an ordinance, it will accept a base year value transfer from any other county in California as long as all the requirements are met.
Generally, you must file your claim with the county assessor within three years of the acquisition or completion of construction of the replacement property.
It Appears to me, the exchange is based on the value, at the time of the exchange. It's not an absolute value.
Yes, the houses need to be in the same county OR in another county, that allows an exchange from other other counties, such as. Here is the text from the link I provided:
Comments 1 - 3 of 7 Next » Last » Search these comments
When I was told this, I couldn't believe it. I just had to look it up.
Apparently, one can transfer their LOWER property tax from one house to a new house.
Example: Patrick buys a lovely RedWood city home in 1980 for $150,000, and pays $2,000 per year in property tax. He then
wants to move to Foster City to an equivalently valued home (now costing $900,000), where his new tax bill SHOULD be
around $15,000.
So, Patrick (sorry don't mean to make you a bad guy) applies for an exemption, and he gets it.
I just found out about this, and along with Prop 13, this is one of the bullshit scams long time BA locals use to keep
the bubble going here.
Read about it at: http://www.boe.ca.gov/proptaxes/faqs/reappraisal.htm
(OK, granted, one has to be 55 or older, OR disabled, or, I guess a veteran)
The maintenance guy at my apartment complex told me about this. He was boasting, that if he didn't have this
exemption, they couldn't have upgraded and bought their new home.
Apparently, he was able to transfer his fathers property (his childhood home his father bought in the 1950's) Which was first transferred from his father to himself (prop 13), THEN he did a Prop 60/90/110 exemption.
Now, he lives in a $900,000 home (all fixed up nice like), and pays $550 a year in property taxes.
Can't make this sh*@!t up.