In 1986 California voters passed Proposition 60 that amended the State Constitution to allow property owners over the age of 55 years old to move within their current county and keep their property tax base assessment from their original property. This law gave relief to seniors who moved from paying higher basic property taxes.
In 1988 California voters passed Proposition 90 that amended the State Constitution to extend the same Prop 60 rules to property owners over the age of 55 years old moving across county lines. Since Prop 90 is a "local-option" law, counties have the choice to adopt a Prop 90 ordinance and allow these types of transfer exemptions. Currently San Mateo and Santa Clara Counties both have Prop 90 ordinances.
For information from the Santa Clara County Assessors Office regarding Prop 60 and 90 please click here.
For more information from the California Association of Realtors regarding Prop 60 and 90 please visit the "Prop 90 Watch".