Proposition 19 recently passed, amending California’s Constitution by expanding qualifications for the transfer of a property’s taxable value.
Beginning April 1, 2021, Prop 19 allows an owner of a primary residence who is over 55 years of age, severely disabled, or is a victim of a wildfire or natural disaster to transfer the taxable value of the primary residence to a replacement primary residence:
- anywhere in California
- purchased or newly constructed within two years
- of any value with an upward adjustment for a more expensive replacement
- The property tax base can be transferred up to three times for people meeting the criteria above.
Also, beginning February 16, 2021, Prop 19 narrows the rules for parent-to-child or grandparent-to-grandchild exemption for inherited properties. The child or grandchild can transfer the taxable value of the inherited property if:
- the property is the principal residence of the child or grandchild or is a family farm;
- the homeowner’s or disable veteran’s exemption is claimed within one year of the transfer to the child or grandchild;
- the property is used as the principle residence and has a market value above $1 million, an upward adjustment in assessed value would occur.
If you have any questions about this, please contact Cove Canyon Realty at 949-500-3283 or [email protected] for more information.