What did Prop 19 do?

Proposition 19 allows homeowners over age 55 to keep a better tax rate when they sell one house and buy another. It took effect on April 1 and applies to anywhere in the state. It’s about as far reaching as the housing tax revolt of Proposition 13 that passed 1978.

Will Proposition 19 raise property taxes?

Under Prop 19, there’s an expansion of how this works that allows eligible homeowners to transfer their tax basis not just within the same county, but anywhere across California. Homeowners will also be able to move up to three times and carry their property tax basis (subject to certain restrictions), not just once.

How does Prop 19 affect seniors?

“Proposition 19 is 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 …

How does Prop 19 affect family transfers?

Beginning February 16, 2021, Prop 19 limits the parent-child and grandparent-grandchild exclusions to transfers of a primary residence that will be used as the recipient’s primary residence or of a “family farm.” If the fair market value of the property (whether a primary residence or family farm) at the time of …

Is Prop 19 good?

California Proposition 19 passed by a slight majority on Election Day 2020, forever changing the landscape of the Golden State’s housing market. In short, Prop 19 makes it easier for certain groups of homeowners to relocate within the state, but perhaps at the expense of homeowners who inherit property.

Does Prop 19 apply to grandchildren?

Do both spouses have to be over 55 for Prop 19?

To qualify for a Prop 19 tax base transfer, a few criteria must be met. First, either the claimant or claimant’s spouse must be age 55 or older when the original residence is sold. Second, the replacement residence must be purchased within two years either before or after the current residence is sold.