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All you need to know about Prop 19

California Proposition 19 goes into effect on February 1st!

• Eligible homeowners may now transfer their property tax basis anywhere within the state of California and to a property of greater value, whereas previously homeowners were limited to transfers within certain counties and to homes of the same or lesser market value.

• Prop. 19 increases the number of times that certain people may transfer their tax assessments. If a person is 55 years or older, has severe disabilities, or lost a home in a natural disaster, the person may transfer their tax assessment up to three times now (up from one previously).

• The new law also requires market-value reassessments for inherited properties that are not used as the heir’s principal residence. Property owners age 55 and older, will be able to blend the taxable value of their old home with the value of a new, more expensive home, which will result in positive property tax savings.

• Proposition 19 limits the availability of the parent-child exclusion for property tax assessments.

Effective April 1, 2021: Proposition 19 will make the programs more flexible for homeowners over the age of 55, as well as severely disabled persons transferring the taxable value of their existing home to their new replacement home, so long as the market value of the new home is equal to or less than the existing home’s value. • Changes to transfers anywhere in CA • On any value • Purchased or newly constructed residence within two years of sale • Property transfers up to three times

Important Note: Changes in the law may affect your title and escrow transaction. Consult your tax advisor or your tax assessor’s office if you plan to transfer the value of your property. To learn more about Proposition 19 eligibility rules, please visit https://BOE.ca.gov/prop19 for more information and further clarification.

Please don't hesitate to reach out if you have any questions!

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