Califronia Prop 19

With the passing of Proposition 19, the guidelines rules for tax assessment transfers are changed which is due to take effect on January 1, 2021. Qualified homeowners in California may shift their tax assessments to another home of the same or lower market value, which would allow them to move without paying higher taxes. Persons above 55 years of age, persons with serious conditions and victims of natural disasters and hazardous waste contamination are homeowners eligible for tax appraisal transfers.

The ballot measure allowed qualifying residents to transfer their tax assessments anywhere within the state and allowed the tax valuation to be transferred to a more costly home with an upward change. The number of times the tax assessment should be transferred increased from one to three for people over 55 years of age or with serious conditions (disaster and contamination victims will continue to be granted one transfer).

Enable qualifying residents to transfer their tax assessments somewhere within the state and allow the tax valuation to be moved to a more costly home with an upward adjustment. Increase the number of times that individuals over 55 years of age or with serious disabilities can move their tax assessments from one to three. Require that inherited homes that are not used as principal residences, such as second homes or rentals, be reassessed at market value when transferred. Allocate additional revenue or net savings resulting from the ballot measure to wildfire agencies and counties. In California, parents or grandparents may transfer primary residential assets to their children or grandchildren without the property tax’s assessment resetting to market value. Such categories of properties, such as vacation homes and company properties, may also be transferred from parent to child or grandparent to grandchild, with the first $1 million free from reassessment when transferred. Prop 19 excludes the exception from parent-to-child and grandparent-to-grandchild in situations where the child or grandchild does not use the inherited property as their primary residence, such as the use of the property as a rented house or a second home. If the inherited house is used as the principal residence of the beneficiary but is sold for $1 million higher than the taxable value of the property, an upward increase to the value measured will arise. The ballot measure also extended these rules to certain farms.

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