What Changed With Proposition 19?
Here’s what Proposition 19 changed and how it benefits you and your family.
The California Proposition 19 Property Tax Transfers, Exemptions, & Revenue for Wildlife Agencies and Counties Amendment 2020 was recently passed. This is a mouthful, but today I’m explaining Proposition 19 so you know what has changed and how it benefits you.
Before Prop 19 passed, people 55 years and older could transfer their tax base (their property tax from their current house) to an equal or lesser value house. The exceptional Prop 19 states that those same people plus the severely disabled, and victims of wildfire and/or natural disasters can transfer their tax base to any house in California. Imagine you have a $600,000 home right now with a low tax base that you bought 10 or even 30 years ago. Now you can transfer that low tax base to a $1 million house and have the same taxes.
Under Prop 19, you can also transfer your tax base to your children.
Also, before you could only do this transfer one time. Now, you can transfer those taxes three times. So if you’re considering buying another property, concerned about property taxes, or maybe have a fixed income, this is ideal for you. You could get a larger home or downsize to a one-story because the big house you currently live in isn’t a good fit for you anymore.
Under Prop 19, you can also transfer your tax base to your children. However, this property has to be your primary residence, and it also has to become your child’s primary residence when it’s transferred. This is allowed as long as that property is not worth more than $1 million more than what the value was originally for the parents. So this is a massive benefit for the next generation as well.
If you have any more questions about Prop 19 or real estate in general, give me a call or send an email. I look forward to speaking with you, and I would love to be your real estate resource.