A property tax relief ordinance aimed at encouraging potential buyers who are 55 and over or permanently disabled to purchase a home in Riverside County will take effect Thursday.
Last month, the Board of Supervisors approved Ordinance 920 to offer incentives for property owners in other counties to relocate to Riverside County. The ordinance codifies provisions of Proposition 90, approved by California voters in 1988, and Proposition 110, approved by voters two years later.
Prop. 90 permits homeowners 55 years and over to retain, when they move, the ``factored base year'' assessment that determines how much they pay annually in property taxes. According to the law, a property owner can relocate to another county, purchase a house there and pay the same amount of annual property 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 to homeowners who are permanently disabled.
``We have put this incentive in place to generate positive activity in home purchases and spending on goods and services in our local economy," said board Chairman John Benoit. ``There is a lot of interest by retirees who are anxious to establish their dream home in Riverside County, and this ... will help them utilize these benefits."
In order for a buyer to make use of the new provisions, he or she must use the property bought in Riverside County as a primary residence. If a couple are relocating together, only one need be 55 or older to qualify for the transfer allowance.
Only nine counties in the state have ordinances that provide for inter-county transfers of property taxes. Riverside County had such an ordinance in place until 1995, when it was rescinded because of concerns over property tax losses.
Supervisors Benoit and Kevin Jeffries, who jointly proposed re-implementing Propositions 90 and 110, touted the potential collateral economic benefits.
Inland Valley Association of Realtors' President Doug Shepherd cited studies showing that Prop. 90 could generate an additional $127 million in annual economic benefits and lead to the creation of 676 new jobs annually.
He said retailers and contractors would realize gains as new residents pay for home improvements, furnishings and other necessities.
Information about the ordinance and how to apply for a tax assessment transfer can be found at the Assessor-Clerk-Recorder's website: http://www.riversideacr.com, or by calling (951) 955-6200.