California Proposition 19: A Guide to the New Property Tax Breaks
What is Proposition 19?
Proposition 19 is a constitutional initiative that was passed by California voters in November 2020. It makes significant changes to the state's property tax rules, including allowing homeowners to transfer their property tax base to a new home anywhere in the state, regardless of its value.
How Does Proposition 19 Work?
Under Proposition 19, homeowners over the age of 55, severely disabled homeowners, and victims of wildfire or natural disasters can transfer their property tax base to a new home anywhere in the state, as long as the new home is of equal or lesser value than the old home.
Example:
For example, if a homeowner over the age of 55 has a home in Los Angeles with a property tax base of $500,000, they can sell that home and buy a new home in San Francisco, even if the new home is worth $1 million. Their property tax base would remain at $500,000, saving them thousands of dollars in property taxes each year.
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