Homeowners in California passed Proposition 19 handily last November due to its potential to free up precious housing inventory while creating tax benefits for those who qualify. This new law went into effect April 1st of this year, giving Californians who may feel “stuck” in certain situations an option to move on to a new home or property that better fits their current needs. This article is intended to explain who qualifies and the general benefits of Prop 19. If you or someone you know falls within one of these categories, you should consult with a Bennion Deville Homes real estate professional to learn more and to get personalized advice based on your specific situation.
Prop. 19 is designed to benefit Californians who are most in need, including homeowners age 55+, victims of wildfires and other natural disasters, as well as those with severe disabilities. Those qualifying groups may transfer their property tax base of their existing home to a new home anywhere in California up to 3 times, possibly more if you are the victim of a wildfire or natural disaster.
Additionally, 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. There may be an upward adjustment to your tax basis if the replacement property is of greater value, and there are limits to the tax benefit for certain transfers of real property between family members. Consult with your real estate professional or an attorney to find out if this applies to you.
For seniors, some retirees, and homeowners 55+, Prop. 19 allows you to move more easily to a location within The Golden State that is closer to family, closer to amenities, or to a home that better meets your changing lifestyle needs. The long-term benefits of this rule should help free up more properties for all kinds of homebuyers, including renters who are looking to buy, first-time buyers, and move-up buyers, while making it easier for those downsizing or moving on from their home by offering the opportunity to do so more freely and with an incentive to make the move.
As with all real estate needs and situations, it is best to work with a qualified real estate professional for guidance and to explore your options. We hope that you will include a Bennion Deville Homes agent in your process. We will unlock possibilities for you.