Local property tax breaks take effect Thursday

A property tax relief ordinance aimed at encouragingpotential buyers who are 55 and over or permanently disabled to purchase a homein Riverside County will take effect Thursday.

Last month, the Board of Supervisors approved Ordinance 920 to offerincentives for property owners in other counties to relocate to RiversideCounty. The ordinance codifies provisions of Proposition 90, approved byCalifornia voters in 1988, and Proposition 110, approved by voters two yearslater.

Prop. 90 permits homeowners 55 years and over to retain, when they move,the “factored base year” assessment that determines how much they payannually in property taxes. According to the law, a property owner can relocateto another county, purchase a house there and pay the same amount of annualproperty taxes he or she was paying on the home sold in the original county,despite upgrading.

Prop. 110 affords the same treatment, only it applies exclusively tohomeowners who are permanently disabled.

“We have put this incentive in place to generate positive activity inhome purchases and spending on goods and services in our local economy,” saidboard Chairman John Benoit. “There is a lot of interest by retirees who areanxious to establish their dream home in Riverside County, and this … willhelp them utilize these benefits.”

In order for a buyer to make use of the new provisions, he or she mustuse the property bought in Riverside County as a primary residence. If a coupleare relocating together, only one need be 55 or older to qualify for thetransfer allowance.

Only nine counties in the state have ordinances that provide for inter-county transfers of property taxes. Riverside County had such an ordinance inplace until 1995, when it was rescinded because of concerns over property taxlosses.

Supervisors Benoit and Kevin Jeffries, who jointly proposed re-implementing Propositions 90 and 110, touted the potential collateral economicbenefits.

Inland Valley Association of Realtors’ President Doug Shepherd citedstudies showing that Prop. 90 could generate an additional $127 million inannual economic benefits and lead to the creation of 676 new jobs annually.

He said retailers and contractors would realize gains as new residentspay for home improvements, furnishings and other necessities.

Information about the ordinance and how to apply for a tax assessmenttransfer can be found at the Assessor-Clerk-Recorder’s website:http://www.riversideacr.com, or by calling (951) 955-6200.