How The Rich Keep Their Money

by Kelly Corsino

Prop 19: Understanding the Changes to California's Property Tax Laws

Proposition 19, or Prop 19, is a California state law that was implemented on April 1, 2021. The law changes the property tax laws in California and affects homeowners, wildfire victims, and severely disabled individuals. In this blog post, we will discuss the changes brought about by Prop 19 and what they mean for Californians.

  1. What is Prop 19?

Prop 19 is a law that changes the rules around property tax assessments in California. The law has two main components:

  • It allows homeowners who are 55 years or older, severely disabled, or wildfire victims to transfer their property tax assessments to a new home anywhere in the state.
  • It eliminates the ability to transfer property tax assessments from parents to children or grandchildren unless the new owner uses the property as their primary residence.
  1. Who is affected by Prop 19?

Prop 19 affects several groups of people:

  • Homeowners who are 55 years or older, severely disabled, or wildfire victims.
  • Children or grandchildren who inherit property from their parents or grandparents and do not use the property as their primary residence.
  1. How does Prop 19 affect property tax assessments?

Prop 19 changes the rules around property tax assessments in several ways:

  • It allows eligible homeowners to transfer their property tax assessments to a new home anywhere in the state, regardless of the value of the new home.
  • It limits the ability to transfer property tax assessments from parents to children or grandchildren. The new owner must use the property as their primary residence, and the property cannot be worth more than $1 million over the assessed value of the previous property.
  • It allows eligible homeowners to transfer their property tax assessments up to three times in their lifetime, while wildfire victims can only use it once.
  1. How can homeowners take advantage of Prop 19?

To take advantage of Prop 19, homeowners must meet certain criteria:

  • They must be 55 years or older, severely disabled, or wildfire victims.
  • They must sell their primary residence and purchase a new home within two years of the sale.
  • They must file the necessary forms with the county to transfer their property tax assessment.
  • The new home can be worth more than the previous home.
  1. What are the benefits of Prop 19?

Prop 19 provides several benefits to eligible homeowners:

  • It allows them to transfer their property tax assessment to a new home anywhere in the state.
  • It allows them to purchase a new home that is worth more than the previous home.
  • It allows them to transfer their property tax assessment up to three times in their lifetime.
  1. What are the downsides of Prop 19?

Prop 19 has some downsides:

  • It limits the ability to transfer property tax assessments from parents to children or grandchildren, making it more difficult for families to keep property in the family.
  • It could result in higher property tax bills for some homeowners.
  1. What should homeowners do?

Homeowners who are eligible for Prop 19 should consult with an experienced estate planning attorney to determine how the changes brought about by the law affect them. They should also explore their options for transferring their property tax assessment and understand the potential impact on their property tax bills.

Prop 19 is a significant change to California's property tax laws. It provides several benefits to eligible homeowners, but it also has some downsides. Homeowners should consult with an experienced attorney to determine how the changes affect them and make informed decisions about their property.

 

#Prop19 #Californiapropertytaxassessments #homeowners #wildfirevictims #severelydisabledindividuals #propertytaxbills #estateplanningattorney #transferpropertytaxassessment.

 

GET MORE INFORMATION

Kelly Corsino

Agent | License ID: 01704102

+1(949) 229-0019

Name
Phone*
Message

By registering you agree to our Terms of Service & Privacy Policy. Consent is not a condition of buying a property, goods, or services.