On November 3, 2020, California voters approved Proposition 19, the Home Protection for Seniors, Severely Disabled Families and Victims of Wildfire or Natural Disasters Act. Proposition 19 is a constitutional amendment that limits people who inherit family properties from keeping the low property tax base unless they use the home as their primary residence, but it also allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster to transfer their assessed value of their primary home to a newly purchased or newly constructed replacement primary residence up to three times.
The new law will make important changes to two existing statewide property tax saving programs:
(City & County of San Francisco - Office of the Assessor-Recorder)
Below is a simplified break-down comparison of how Proposition 19 will affect base year value transfers of persons at least 55 years of age.
Current Law Proposition 19
Type of Property - Principle Residence - Principle Residence
Timing - Purchase or newly construct - Purchase or newly construct
residence within 2 years of sale residence within 2 years of sale
Location of - Same County - Anywhere in California
Replacement Home - County with intercounty ordinance
(only 10 counties applicable)
Value Limit - Equal or lesser value - Any Value
- 100% if replacement purchased/new -Amount above 100% is added
construction prior to sale to transfer value
- 105% if replacement purchased/new
construction in first year after sale
- 110% if replacement purchased/new
construction in second year after sale
How Many Transfers? - One time - Three times
- Exception: After using once for age, a
second time for subsequent disability
Implementing Statute - Revenue & Taxation Code section 69.5 - To be determined
(implements Propositions 60/90/110)
Important Dates - Through March 31, 2021 - Effective April 1, 2021
Additionally, here are some quotes from the actual Proposition 19 legislation.
Attached below is a pdf version of the full Proposition 19 legislation. Highlighted are the areas that pertain to the 55 and above group.