Proposition 19, which was passed by voters in November 2020, introduces two key provisions:

Expanded Property Tax Transfer for Homeowners 55+: Homeowners aged 55 or older, those with severe disabilities, or victims of natural disasters can now transfer the taxable value of their primary residence to a new home anywhere in California, up to three times. This can be a huge benefit if you're downsizing or relocating, as it allows you to carry over your lower property tax base to a new home, potentially saving you a significant amount on taxes.

Changes to Inherited Property Rules:

Under Prop 19, inherited properties that are not used as primary residences will now be reassessed at market value. If you plan to pass down property to your children or grandchildren, they will only be able to keep your lower tax base if they live in the inherited property as their primary residence. This change could result in higher property taxes for inherited second homes, rental properties, or vacation homes.

How Does Prop 19 Compare to Propositions 60/90?

Previously, under Propositions 60 and 90, homeowners 55 or older were able to transfer their property tax base only within certain counties and only one time. These propositions allowed the tax base transfer within the same county (Prop 60) or between certain counties that accepted transfers (Prop 90).

Proposition 19 expands on this by:

Allowing homeowners to transfer their property tax base anywhere in California.
Permitting the tax base transfer up to three times, instead of just once.
Extending this benefit to victims of natural disasters and severely disabled individuals.
These updates provide greater flexibility and savings potential for eligible homeowners.

How Can Prop 19 Affect You?

If you’re thinking about selling your home and relocating, Proposition 19 could offer significant tax savings, especially if you’ve owned your home for a long time.

If you’re planning to pass down property to your children or other heirs, it’s important to understand how these new rules could affect their future property tax liabilities.

We are here to help if you have any questions about how this might affect your current or future real estate plans. Whether you’re thinking about buying, selling, or planning for the future, feel free to reach out.