As we enter spring and COVID restrictions are loosening, many homeowners are thinking about a potential move. Have you thought about moving but are worried about property tax increases? 

There are new tax benefits you could be qualified to take advantage of that will allow you to move without big tax increases. 

Proposition 19

With the passage of Proposition 19, homeowners who are 55+, severely disabled or victims of wildfire or natural disaster may transfer their property tax base of their existing home to a new home anywhere in California without price restriction. This is a significant improvement from the current law that is confusing, unfair and limiting. 

 

Prop 19 new tax benefits for homeowners 55+, severely disabled, or victims of wildfire or natural disaster, as of April 1, 2021 include:

  • Moving anywhere in California: Prop 19 removes location restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home anywhere in California.
  • Moving to any home regardless of price: Prop 19 removes price restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home regardless of price (with an adjustment upward to their tax basis if the replacement property is of greater value).
  • Transferring the low property tax base of your original home to a new home up to THREE times (or more for victims of wildfire or natural hazard). 

 

This could result in substantial savings in annual property taxes! 

 

These new tax benefits go into effect April 1, 2021.  

 

For transactions involving either the sale or purchase of a primary residence that close before April 1, 2021, please consult with your qualified estate planning or real estate attorney. 

 

Interested in learning more? 

 

Read more about Prop 19 here:

https://www.kaleorealestate.com/prop-19/

 

Resources for Homeowners:

California State Board of Equalization Website

https://www.boe.ca.gov/prop19

Los Angeles County Office of the Assessor

https://assessor.lacounty.gov/prop19/ 

San Bernardino County Office of the Assessor

 

https://sbcountyarc.org/services/prop19/

Orange County

https://www.ocgov.com/gov/assessor

Riverside County

https://www.asrclkrec.com/Proposition19

 

 

If the mental roadblock to selling is not taxes, but something else like the inconvenience, pre-listing repairs, and being nervous you won’t find something that you like, then tell me! We can walk through your options. 

This content is not the product of the National Association of REALTORSĀ®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.