What is California Proposition 19?
California Proposition 19 is a ballot measure that was passed by California voters in November 2020. This measure makes significant changes to the state's property tax rules, particularly for homeowners who are over 55, severely disabled, or victims of natural disasters.
Under Proposition 19, eligible homeowners can now transfer their property tax base to a new home anywhere in California, regardless of the new home's value or location. This is a significant change from the previous rules, which only allowed for property tax transfers within the same county or to a home of equal or lesser value.
Additionally, Proposition 19 removes the parent-child and grandparent-grandchild property tax reassessment exemptions for inherited properties that are not used as the primary residence of the inheritor. Under the new rules, inherited properties that are not used as primary residences will be reassessed at market value when transferred to the new owner. This change will generate additional revenue for local governments and schools, but may also result in higher property taxes for some homeowners.
Proposition 19 provides more flexibility for eligible homeowners who want to move to a new home while retaining their current property tax base. However, it also means that inherited properties may face higher property taxes, particularly if they are not used as the primary residence of the new owner.
If you are a homeowner in California, it is important to understand how Proposition 19 may affect you and your property taxes. You may want to consult with a tax professional or real estate attorney to understand your options and make informed decisions about your property.
