Proposition 19 Information
- Effective February 16, 2021, the proposition adds limitations on, and additional requirements for, Parent-Child and Grandparent to Grandchild transfer exclusions of a principal residence and eliminates the ability to exclude $1,000,000 in assessed value of property other than the principal residence. It also adds a yet to be completely defined ability to transfer a “Family Farm” among these same family members.
- Effective April 1, 2021, Proposition 19 changes the exclusion from reassessment for those 55 and older, or disabled, who wish to transfer their base value to a replacement home. Taxpayers will be able to transfer their base value to a replacement home located anywhere in the State. The requirement that the replacement property be of equal or lesser value will be eliminated. However, if taxpayers buy a replacement property of greater market value than their original home, their new assessment will add the difference to their existing base. The BOE advises that at least one side of the transaction must occur on or after April 1, 2021.
- Also, effective on or after April 1, 2021, Proposition 19 allows a property owner, whose home is damaged at greater than 50% of value in a wildfire or other natural disaster, to transfer their Proposition 13 base value to a replacement home anywhere in the State. If the replacement home is of greater market value than the damaged home, the difference in market value will be added to their original base.