What is Prop 19?
Proposition 19 changed the rules for tax assessment transfers. In California, eligible homeowners could transfer their tax assessments to a different home of the same or lesser market value, which allowed them to move without paying higher property taxes.
What are the new rules?
- Homeowners over the age of 55 may transfer their tax assessments anywhere within the state and allow tax assessments to be transferred to a more expensive home with an upward adjustment. Previously the replacement home had to be less expensive and located within certain cooperating counties.
- The number of times that eligible homeowners may utilize this benefit is three times. Previously it was only one.
- Homes which are inherited and not used as principal residences will be reassessed at market value when transferred. Previously properties could be passed down to heirs without triggering a tax reassessment.
- Additional revenue or net savings resulting from the ballot measure to be directed to wildfire agencies and counties.
Are you considering making a move? Let’s have a strategy conversation!