In November 2020, California voters passed Proposition 19, which makes changes to property tax benefits for families, seniors, severely disabled persons, and victims of natural disaster in our state. This page provides an overview of the changes that Proposition 19 makes to some of the Property Tax benefits.
Disclaimer: The information provided is intended to provide general and summary information about Proposition 19. It is not intended to be a legal interpretation or official guidance, or relied upon for any purpose, but is instead a presentation of summary information. Proposition 19 is a constitutional amendment, so additional legislation, regulations, and statewide guidance are expected to clarify its implementation. If there is a conflict between the information provided here and the proposition or any legal authorities implementing or interpreting the proposition, the text of the proposition and the other implementing or interpretive authorities will prevail. Please continue to visit our website or the website of the State Board of Equalization for more information. We encourage you to consult an attorney for advice on your specific situation.
The Change in Ownership date determines if Proposition 19 applies, or the prior rules apply. In cases of inheritances, the Change of Ownership date is the date of death of the transferor; in cases of trusts, the Change in Ownership date is the date the trust became irrevocable; in cases of a sale of the property the Change in ownership date is the recording date. Where the transfer is evidenced by recordation of a deed or other document, the date of recordation shall be rebuttably presumed to be the date of ownership change. This presumption may be rebutted by evidence proving a different date to be the date all parties’ instructions have been met in escrow or the date the agreement of the parties became specifically enforceable.
What is Proposition 19?
On November 3, 2020, California voters approved Proposition 19, the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act. Proposition 19 is constitutional amendment that limits people who inherit family properties from keeping the low property tax base unless they use the home as their primary residence, but it also allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster to transfer their assessed value of their primary home to a newly purchased or newly constructed replacement primary residence up to three times.
The new law will make important changes to two existing statewide property tax saving programs:
- Replace Proposition 58 (1986) and Proposition 193 (1996) by limiting parent-and-child transfer and grandparent-to-grandchild transfer exclusions - Effective 2/16/2021
- Replace Proposition 60 (1986) and Proposition 90 (1988) programs for home transfer by seniors and severely disabled persons - Effective 4/1/2021
Current law, as amended by Proposition 19, limits the qualifying opportunities to exclude from reassessment transfers of assessed values between parents and children and grandparents to grandchildren.