Fear of an enormous increase in property tax can be a reason why a homeowner stays in their home and doesn’t move to a home better suited for their needs. But what if there was a way to solve that problem?
This week, we wanted to highlight an important proposition in California that not nearly enough homeowners are aware of: Proposition 19. Fully implemented in April 2021, Prop 19 allows eligible homeowners to sell their home in California and purchase another anywhere in the state—while transferring their existing property tax base.
Who qualifies?
Prop 19 applies to eligible California homeowners who are:
Over 55 years old
Severely disabled
Victims of wildfire or natural disaster
Unlike the older and more restrictive Prop 60/90, which only applied to specific counties, Prop 19 is statewide. Moving from Los Angeles to Fresno? Bakersfield to Riverside? Orange to San Bernardino? All of those moves would qualify!
With the Alta Dena and Pacific Palisades wildfires just this year, Proposition 19 has become especially relevant once again. After the close of escrow, you’ll need to file a claim form with the County Assessor. As the California Board of Equalization explains:
“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. This is not done through escrow.”
There are a lot of nuances in how you can use Prop 19, but the first step is simply becoming aware that it’s even an option!
Watch this quick video for more information:
https://youtu.be/uXSPupHxbPI?si=NvYgQFDWg9u_1lsM
Let’s talk about what your home could sell for in today’s market. Zestimate can give you a ballpark figure, but remember—local markets are nuanced. A strong marketing strategy can help you maximize your return when it’s time to sell.
