Did you know that there are at least four property tax relief programs that benefit our senior communities throughout Orange County?

Seniors enjoy several property tax relief programs that may help reduce their property taxes. These programs include the parent-child exclusion (Proposition 58), grandparent-grandchild exclusion (Proposition 193), base year value transfers (Propositions 60 and 90), and property tax postponement.

Parent-Child Exclusion (Proposition 58)

This benefit excludes transfers of real property between parents and children from Proposition 13 reassessment, subject to certain limitations. All types of transfers are covered, including: gifts, sales, and transfers occurring upon the death of the real property owner. It applies to the principal residence and first $1 million of other real property. To receive this benefit, the parents and children merely need to complete a claim form. For detailed information regarding this benefit, see the State Board of Equalization's Web site.

Grandparent-Grandchild Exclusion (Proposition 193)

Certain transfers of real property from grandparents to their grandchildren may qualify for an exclusion from Proposition 13 reassessment if the parents of the grandchildren have already died. All types of transfers are covered, including: gifts, sales, and transfers occurring upon the death of the grandparent. Other restrictions are similar to the Parent-Child Exclusion described above. For detailed information regarding this benefit, please refer to the State Board of Equalization's Web site.

Base Year Value Transfers (Propositions 60/90)

Persons over the age of 55 can transfer the Proposition 13 base year value of their existing residence to a replacement residence of equal or lesser value, subject to certain conditions. Ordinarily, both the original and replacement properties must be located in the same county. However, that limitation does not apply to seniors moving to Orange County since we have an ordinance allowing inter-county base year value transfers.

For detailed information regarding base year value transfers, please refer to the State Board of Equalization's Web site.

Property Tax Postponement

The Property Tax Postponement Program, administered by the State Controller's Office, allows eligible homeowners-aged 62 or older-to postpone payment of the property taxes on their residence. To qualify for this program, homeowners must complete a claim form and submit it to the State Controller. Although this program creates a lien on the residence, the taxes need not be paid until the property owner leaves the residence permanently, or the residence is rented out. Information regarding the Property Tax Postponement program is available on the State Controller's Web site.