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	Tax California Propositions   Property Taxation: Depreciation Taxation of Profit Adjusted Basis Home Mortgage Interest and Points Deduction   1031 EXCHANGES Capital Gains Tax Corporate Tax Corporation Dividend Tax Double Taxation European Union Savings Taxation Homeowners exemption Foreign Investment in Real Property Tax Act. Flat Tax Principles of Income Tax Income taxes Inheritance Tax Installment Sales Poll Tax Progressive Tax Property taxes California Propositions Purposes and Effects of Taxation Retirement Tax Sales Tax Sales leaseback Tariff Tax Credit, Exemption Equivalent and Tax Tax Rates Tax Treaty Direct and Indirect Taxation Value Added Tax Proposition 13 Proposition 13 was enacted in 1978. It states that newly acquired a real estate or new construction will be assessed according to the fair market value and taxed at a maximum rate of 1% , called the basis levy.  One of the objectives of proposition 13 is to keep property taxes as low as possible.  According to proposition 13, certain transfers of title, such as a sale, will cause a reassessment of the property, which will increase the property taxes.   Proposition 58 Proposition 58 provides that transfers of real property between spouses and transfers of the principal residence in the first $1 million of other of real property between parent and child are exempt from reassessment.  To receive this exclusion, a claimant must be filled with the county assessor.  The claim must contain a written certification by the transferee made under penalty of perjury that the transferee is a parent or child of the transferor.  The statement must also state whether the property is the transferor's principal residence.  If the property is not the transferor's principal residence and the full cash value of the real property transferred, the eligible transferee must specify the amount and allocation of the exclusion on the claim.   Proposition 60  Proposition 60 provides that qualified homeowners aged 55 or over, as well as taxpayers who are severely and permanently disabled, may transfer the current base year value of their present principal residence to a replacement, that is, sell their old home and buy a new home, with the following conditions: -both properties must be in the same county -the transferor must be at least 55 years old as all of date of transfer(sale).  If married, only one spouse needs to be at least 55 or older but must reside in the residence, if co-owners, only one co-owner  needs to be at least 55 or older and must reside in the residence. -the original residents must be eligible for a homeowners exemption at the time of sale (transfer).However, if the replacement dwelling is acquired the first, then the original resident of the replacement dwelling must be qualified for a homeowners exemption as of the date of the sale.  Also, the replacement dwelling must be eligible for the homeowners exemption after purchase as a result of the claimants occupancy has his or her principal residence are. -the replacement property must be purchased or newly constructed on or after November 6, 1986,) within two years of the sale of the original property.  These two year period maybe either prior to or after the sale of the old residence. -if the replacement dwelling is purchased prior to the sale of the original property, the sale price of the replacement residence must be equal to or less than value off the original property.  If the replacement residents is purchased within the first year after the original residence, the value of the replacement residents may be 105% off that of the original residents .If the original residents is purchased within the second year, the replacement sale price may be 110%of the original residents sales price.   Proposition 90 Proposition 90 is expansion of proposition 60. proposition 60limits the purchase of the new home to the same county. Proposition 90 allows the purpose of the new home in a different county in California.   However, the county the homeowner is planning to move into may reject proposition 90.  The only counties to have accepted proposition 90 are Alameda, Kern,Los Angeles,Modoc,Orange,Santa Clara,San Diego,San Mateo and Ventura.