Proposition 19 allows homeowners over 55, disabled, or wildfire/disaster victims to transfer their primary residence’s tax base to a replacement residence. Changes in taxation of family-property transfers. Establishes fire protection services fund. Fiscal impact: Local governments could gain tens of millions of dollars of property tax revenue a year, probably growing over time to a few hundred million dollars per year. Schools could receive similar property tax gains. There are two main parts.
Part A: A Tax Increase As Well As A Tax Benefit
• Includes people 55 or older, people disabled and people affected by a natural disaster.
• You could move your low tax base to a more expensive home and only pay higher property tax on the difference.
• You could use this tax base benefit up to three moves.
• You could move to a new home anywhere in the state of CA without losing your lower tax base.
Part B: A Tax Hike Related To Property Taxes Tied to Inheritance
• Anyone who inherits a home from their parents or grandparents would pay only be allowed to keep the low property taxes if they use the home as their primary residence.
• Provide an upward tax assessment, adjusted for inflation after February 16, 2023, to owner-occupied inherited.
• Most new taxes will be dedicated to sitewide fire protection, schools, and local governments.
• Grandparents can only pass on to grandchildren if the parents are already deceased.
Click here to learn more about Proposition 19.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
