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Chief Administrative Office recommending the Board approve Final Passage (Second Reading) of Ordinance 5070 rescinding County Ordinance 5040 (not codified) and amending County Ordinance 4832 (not codified) both regarding adoption of Proposition 90 - Property Tax Portability in El Dorado County. (Cont. 12/5/17, Item 41)
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DEPARTMENT RECOMMENDATION
Chief Administrative Office recommending the Board:
(1) Approve the Introduction and First Reading of Ordinance 5070 rescinding County Ordinance 5040 (not codified) and amending County Ordinance 4832 (not codified) both regarding adoption of Proposition 90 - Property Tax Portability in El Dorado County; and
(2) Waive full reading, read by title only, and continue this matter to December 12, 2017 for Second Reading and Final Adoption; in order to change to the current Ordinance establishing Proposition 90 (Property Tax Portability) program in El Dorado County, to discontinue the Proposition 90 program in El Dorado County by setting the date of November 7, 2018 as the date after which Proposition 90 will no longer be in effect for new sale/purchase transactions.
BACKGROUND
At their meeting of December 5, 2017 (Item 41) the Board approved Ordinance 5070 and Continued to December 12, 2017 for Final Passage (Second Reading).
Under Proposition 13, the value of a home for property tax purposes is reassessed at market value whenever a change in ownership takes place. This usually results in higher property taxes for the homebuyers as homes reassess at sale. In November 1988, California voters approved Proposition 90, which provides anyone over the age of 55 with relief from reassessment by allowing them to move from one county to another without undergoing a change in their base property taxes, provided that the home that is purchased in the new county is of the same, or lower, value.
Proposition 90 is a “local-option” law which means that each county has the option of participating. If a county has adopted a Pro...
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