Prop 19 Explained
Proposition 19 (The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, also known as "Prop 19") was a ballot measure passed by California voters on November 3, 2020. Generally speaking, Prop 19 updates the provisions previously enacted in Propositions 60/90 and 110. Certain parts of the proposition are effective February 16, 2021 while most of the legislation is effective April 1, 2021.
For those eligible to take advantage of Prop 19, the property tax savings can be significant while also greatly expanding the homes and locations that qualify as replacement properties!
Props 60/90 were previously known for providing California home owners 55 and older the ability to transfer the tax assessed value of their current home to their next home. This could be done on homes sold and bought within the same county or between 10 counties participating in the intra-county ordinance. Under Props 60 and 90, the purchase price of the replacement home had to be lower than the sales price of the homeowners current home. Prop 19 not only expands the transferability of your property's tax assessed value, it also expands who is eligible to take advantage of this.
Who is Eligible?
Homeowners 55 and older
Homeowners with severe disabilities
Homeowners whose homes have been destroyed by natural disaster
Prop 19 now allows eligible homeowners the ability to transfer the tax assessed value of their current home:
To their next home in any county in California. This is no longer restricted to moves within county or between the 10 counties participating in the intra-county ordinance.
To their next home regardless of whether the next home is of higher or lower value compared to their current home. If you buy a home of greater value than your current home, there is a calculation to determine what the tax assessed value will be on your new home. Use the Prop 19 Calculator on our home page to figure out the tax benefits you may see when making a move.
Up to three times in their lifetime. Previously this transfer was only allowed once.
Note that Prop 19 also has new limitations related to inherited properties. Additional details as well as a more complete breakdown and comparison of the previous law versus provisions of Prop 19 can be found on the California Board of Equalization site.
The previous propositions in combination with Prop 19 updates can be very beneficial to homeowners looking to downsize or move to areas closer to family or to a preferred retirement location in California. Reach out if you'd like to discuss more - we'd love to help you in any way we can!
Note: The information presented on this site is intended to provide general and summary information about Proposition 19. It is not intended to be a legal interpretation or official guidance or relied upon for any purpose, but is instead a presentation of summary information and estimated impacts on property taxes based on the best available information. If there is a conflict between the information presented and the text of the proposition or its implementation, the text of the proposition or legal interpretation will prevail. It is highly encouraged that you consult an attorney for advice specific to your situation.