Starting Thursday, California homeowners who are 55 years old, disabled, or victims of a natural disaster will be able to transfer their previous property tax base when they sell their home and buy a more expensive one.
“This is good news,” said Jeffrey Prang, assessor for Los Angeles County. “Eligible homeowners can now take advantage of Prop 19, which gives them more flexibility in choosing a home that better suits their needs, even if it is more expensive than their current home.”
The benefit that is part of Proposition 19, which was approved by voters during the November 3, 2020 election, allows eligible homeowners to transfer the appraised value of their property to a home up to three times more expensive. According to the previous law, homeowners could only transfer their value determined in the base year to a house with the same or lower value.
“California has long been grappling with a housing shortage that has contributed to the high cost of housing across the state. Prop 19 is working to address this shortage in part by removing the incentive many seniors face when they are in Consider moving into a more manageable home to take away their valued value, we may see more movement in the property market, “Prang said.
The proposal also reduces tax breaks for families who inherit real estate. In these circumstances families do not automatically inherit the property’s appraised value. If the inheriting family member does not move into the property within a year, the property will be revalued for value.
Prang has raised concerns that this component of the proposal could have a disproportionate impact on middle-income families looking to build intergenerational wealth.
“There has been a lot of confusion around Prop 19 and frustration with its vague language and aggressive implementation dates. I’ve worked with the California State Board of Equalization, the California Assessors’ Association, and state lawmakers to legislate to make this possible. ” Prop 19 addresses some of the main issues, “said Prang.
“We can all agree, however, that seniors shouldn’t feel trapped in homes that just don’t fit them anymore. This component of Prop 19 is a welcome change.”
For more information about the offer and its impact on homeowners, please visit Assessor.lacounty.gov/prop19.