1. The house they bought cannot be worth more than the house they sold.
2. The new home had to be in the same county as the old one or in one of 10 counties that accepted incoming transfers of valued value (Alameda, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa ) Clara, Tuolumne, Ventura); and
3. You could only do this once in a lifetime.
Prop 19 offers new tax breaks for homeowners 55 years of age or older, severely disabled, or victims of forest fires or natural disasters. Allows:
• California Moving: Prop 19 removes location restrictions on property tax transfers and allows the property tax base of an existing home to be moved to a new home across California.
• Moving to Any Home Regardless of Price: Prop 19 removes price restrictions on property tax transfers that allow the property tax base of an existing home to be transferred to a new home regardless of price (with an adjustment of the tax base by a percentage of only the amount due for the replacement property is of greater value).
• Transfer the low tax base of your original home to a new home up to THREE times (or more for victims of forest fires or natural hazards)
This means that people who wanted to downsize can now do so without a tax penalty.