Proposition 90 Ordinance: Transfers of Property Tax Base Aassessments

Ordinarily under Proposition 13, the value of a home for property tax purposes is re-assessed to market level whenever achange in ownership takes place. This usually results in higher property taxes for the homebuyer. 

In November 1988, the state‘s voters approved Proposition 90, which is designed to induce greater turnover of homes owned by senior citizens. The measure provides anyone over the age of 55 with relief from Proposition 13 by allowing them to move from one county to another without undergoing a change in their basic property taxes.

Proposition 90 is a “local-option” law; each county has the option of participating. If a county has adopted a Proposition 90 ordinance, it accepts transfers of property tax base assessments from other California counties. If the county that the homeowner is moving from does not have a Proposition 90 ordinance, this does not affect the eligibility of the homeowner.

El Dorado County is one of only a handful of counties participating in this tax saving program.  However, Prop 90 is due to expire in February of 2015.