California Proposition 19 passed in November 2020 and will go into effect on April 1, 2021.
So what's the big deal? Take a look.....
TAX SAVINGS FOR OLDER HOMEOWNERS
Seniors, retirees, and all homeowners aged 55+ can move closer to family, medical care, or to a home that better meets their needs anywhere in California without a tax penalty. Prior to Prop 19 there were only 10 counties in California that allowed homeowners aged 55+ to transfer their tax base. The new law provides flexibility to move to any county within the state.
SAVINGS FOR HOMEOWNERS WITH SEVERE DISABILITIES
Prop 19 removed unfair restrictions on Californians with severe disabilities, allowing homeowners to move to a replacement home anywhere in California without a tax penalty.* Homeowners with severe disabilities can now transfer the tax base of their existing home to a replacement home up to three times. They can move closer to loved ones or a community that can support their needs.
HOUSING RELIEF FOR VICTIMS OF WILDFIRE AND NATURAL DISASTER
After wildfires destroyed thousands of family homes in the past few years, wildfire victims have faced massive property tax hikes when relocating to county. Prop 19 allows victims of wildfire or natural disaster to transfer the property tax base of their damaged house to a replacement home anywhere in California.*
INCREASED INVENTORY FOR YOUNG FAMILIES & FIRST-TIME BUYERS
Many 55+ homeowners want to move closer to children and grandchildren or move to retirement communities. Prop 19 lets them move without a tax penalty.* Why is this a good thing for all? As more seniors take advantage of Prop 19’s tax savings, homeownership opportunities will open up each year for renters, young families, and first-time homebuyers in communities throughout California. Seniors now have the opportunity to downsize from a 4 bedroom to a 2 bedroom and pave the way for families in need of bedrooms and space. It seems to be a win-win.
* With an adjustment upward in the tax basis if the replacement property is of greater value
Source: California Association of Realtors