Nothing strikes fear and confusion into the hearts of California homeowners more than real estate taxes – and nothing is more confusing than the myriad of propositions and rules that govern property tax rates and portability. Now we have a new law that makes new changes to property taxes for certain residents – but what is Proposition 19?
Proposition 19 is written to permit seniors over 55, homeowners with disabilities and victims of wildfires to transfer their property taxes from their existing residence to a new residence – anywhere in California! It elaborates on prior property tax transfers for senior homeowners by permitting the transfer within, or to any county in our state.
The goal of this tax change is to make it easier for senior (and certain other) homeowners to downsize from their current home, without assuming the high cost of a new set of real estate taxes based on the market value of a new home. This process allows new home inventory to enter the market, and ease pressure off our real estate market to make affordable homes a possibility for people trying to buy their first home, or needing to upsize into a larger home.
In a nutshell, if you buy a new home, your property tax base of your existing home can be transferred to the new home. If you’ve lived in your existing home for many years and have a low property tax bill because of our state limits on property tax increases, this change should offer a tremendous benefit.
Of course, everyone should contact their tax advisor or attorney, or your county’s property tax office to clarify how this new law affects your personal situation, especially if you’ve inherited the property.
For more information, visit the official website for Proposition 19 – https://www.caprop19.org/