Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire & Natural Disasters Initiative.
Proposition 19 amends the California Constitution by expanding qualifications for the transfer of a property's taxable value. These changes may affect your next escrow and title transaction, if eligibility requirements are met. Additional documents may be required by escrow if you plan to transfer the current taxable value of the property.
HOW DOES PROPOSITION 19 AFFECT PROPERTY TAX BASE TRANSFERS?
Starting April 1, 2021, Proposition 19 allows an owner of a primary residence who is over 55 years of age, severely disabled, or a victim of a wild fire or natural disaster to transfer the taxable value of the primary residence to a replacement primary residence:
anywhere in California;
purchased or newly constructed within two years;
of any value with an upward adjustment for a more expensive replacement; and
the property tax base can be transferred up to three times for persons over 55 years old or with severe disabilities and once for wild fire or disaster victims.
HOW DOES PROPOSITION 19 AFFECT INHERITED PROPERTIES?
Starting February 16, 2021, Proposition 19 narrows the rules for parent-to-child or grandparent-to-grandchild exemption for inherited properties. The child or grandchild can transfer the taxable value of the inherited property if:
the property is the principal residence of the child or grandchild or family farm;
the homeowner's or disabled veteran's exemption is claimed within one year of the transfer to the child or grandchild;
the property is used as the principle residence and has a market value above $1 million, an upward adjustment in assessed value would occure.
HOW DO SENIORS 55 & OLDER FILE FOR PROPOSITION 19 TAX RELIEF?
This property tax senior relief is not automatic. After selling your existing home and buying a replacement home in one of the participating counties in California, an application must be filed with the county assessor where the replacement property is located.