With the passing of Proposition 19, Californians will see changes to certain property tax rules starting February 16, 2021. Billed as “The Property Tax Transfers, Exemptions, and Revenue for Wildfire Agencies and Counties Amendment,” Prop 19 passed with 51.1% voter approval in November 2020.
Prop 19 changes the rules on exemptions from reassessment for intergenerational transfers starting on February 16, 2021. If the transferred property continues to be used as a Family Home (primary residence), and the transferee claims the homeowner exemption, the property tax basis will remain the same, subject to some upward adjustments if the property value, at the time of transfer, is more than $1M over the original tax basis.
Prop 19 also allows homeowners who are 55 and older, people with severe disabilities, wildfire, or natural disaster victims to transfer their current property tax base to a replacement home anywhere in California effective April 1, 2021.
If you would like to discuss how Prop 19 affects your real estate goals, please contact me.