Proposition 19 FAQs
What is Proposition 19?
Proposition 19 allows homeowners who are age 55 and older, homeowners with severe disabilities, or homeowners who are victims of wildfire or natural disasters to transfer their current property tax base to a replacement home anywhere in California. By making it more affordable for seniors to move to a home that better fits their needs, housing inventory will increase and make more homes available for new families as well as first-time homeowners.
Proposition 19 also changes the rules on exemptions from reassessment for intergenerational transfers by limiting the exemption to the transfer of a primary residence to a child (or grandchild) only when the property continues to be used as a family home by the child (or grandchild), and even then, if the divergence between the taxable value and the actual value is too great, a partial increase in the new taxable value will be imposed. As is the case under current law, under Proposition 19, a grandparent-to-grandchild transfer receives the exemption only if the parents are deceased. Proposition 19 also includes provisions that would allow the transfer of a family farm to retain its taxable value.
Proposition 19 safeguards family transfers as a right in the California State Constitution, protecting tax savings for children and grandchildren on the family home. Of course every situation is different so check with your tax professional to see how Proposition 19 may benefit you.
WHEN DOES PROP 19 GO INTO EFFECT?
Beginning February 16, 2021, the family or intergenerational transfer rules take effect. The second part of Proposition 19 goes into effect April 1, 2021, for the transfer of one’s tax basis anywhere in the State of California regardless of value.
WANT TO LEARN MORE?
To learn more about Proposition 19 from the California Association of REALTORS®, click the links below. You can also reach out to your local county assessor’s office or contact a qualified California real estate attorney or tax advisor for personalized guidance.
*All information regarding Proposition 19 was obtained from California Association on REATORS® and Contra Costa Association of REALTORS®