Prop. 19 property tax modifications start February 16 on the Corning Observer

0
64
 Prop. 19 property tax changes begin February 16 at the Corning Observer

Sacramento – On November 3rd, California voters approved Prop. 19, the Act to Protect the Elderly, the Disabled, Families, and Victims of Forest Fires or Natural Disasters. Starting February 16, there will be significant changes to the property tax law, particularly for families transferring real estate between parents and children or between grandparents and grandchildren when the parents have passed away.

“We’re about two weeks away before the new law goes into effect,” said Antonio Vazquez, chairman of the California State Board of Equalization. “Families planning to give property to their children should immediately consider their options and make a decision that is best for their own circumstances.”

After commissioning, according to Prop. 19, a parent’s main residence can only be transferred without an increase in property tax if their child keeps the house as their main residence. Additionally, Prop. 19 limits the transferable amount equal to the taxable value of the home at the time of transfer plus $ 1 million. The $ 1 million allowance will be adjusted annually starting in 2023. Family businesses can also be eligible, but further clarifications are expected from the state legislature.

Taxpayers are strongly advised to visit the BOE website at https://www.boe.ca.gov/ for the latest information on Prop. 19.