If you are a homeowner in California, there’s a powerful property tax benefit you should know about: Proposition 19.
Fully implemented in April 2021 throughout the state of California, Prop 19 allows eligible homeowners to sell their home and buy another home anywhere in California, while keeping their current property tax base.
Why does this matter? For many homeowners, the fear of a major property tax hike is a big reason they choose not to move, even when downsizing or relocating would better fit their lifestyle. Prop 19 changes that. It opens up opportunities for homeowners.
Who Qualifies for Prop 19? Prop 19 is available to California homeowners who are either:
Age 55 or older
Severely disabled
Victims of wildfires or natural disasters
Unlike the older Props 60/90 (which some of you may be familiar with), which only applied to a handful of counties, Proposition 19 is statewide. That means moves from counties like:
Los Angeles to Fresno
Bakersfield to Riverside
Orange to San Bernardino
…are all eligible.
How does Proposition 19 work? It isn’t automatically applied, that is the first thing to know. After selling your current home and buying your replacement, then you will need to file a claim with the County Assessor.
As the California Board of Equalization states:
Are you curious about what your home could sell for? Online estimates like Zestimate can give a rough idea, but local expertise and a strong marketing strategy are key to maximizing your return.“In order to receive the Proposition 19 base year value transfer, a claim form must be filed after both transactions have been completed and you are living in the replacement home.”
