Proposition 19 Highlights

Proposition 19 Highlights

  • Stephanie Von Thaden
  • 04/6/23
DID YOU KNOW?
 

Proposition 19 Highlights

In the November 2020 election, Proposition 19 passed by California voters, marking the change to 1978 Proposition 13,
that limits property tax for homeowners. Details of these changes can be somewhat complicated. Below, I have broken down the major
highlights and how this new law may affect homeowners in the San Francisco peninsula.
 
Unlike some of the limitations prior to Prop 19, if a person is 55 and older, their property tax from their sold home can be transferred to their new home with a few stipulations regardless of the cost of the new home. An example of how the transfer works is a couple sells their home with an assessed property value of $500,000 for $3,500,000. The new home they purchase costs $5,000,000 which means the assessed property tax on the new home will be the difference between $5,000,000 and $3,500,000 plus $500,000 which equals $2,000,000. This is a significant savings in property tax.
 
Another highlight is children who inherit a property and decide to make it their primary residence, can reap the benefits of the assessed property tax already in place with a value limit up to $1,000,000. If the home is not the main resident of the transferee, the home will be re-assessed and a new property tax placed based on the homes current market value. This is a major change from the the law prior to Prop 19 as before, children who inherited the property could carry over the old property tax regardless of how they decided to use the home without any fair-market value change or cap.
 
Additionally, this new law not only protects seniors but also those effected by wildfire or natural disasters and severely disabled people.
There are many more details to Proposition 19 that can be found on these links or by contacting your County Assessor. Please visit these links below for more information in your County.
 
 

Proposition 19

Proposition 19 Overview

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As a resident and community leader for many years, she is deeply connected to people and organizations that contribute to the vibrance of the area she calls home.