Proposition 19

Overview

Proposition 19

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:

Proposition 19 Brochure Parent-Child and Grandparent-Grandchild Reassessment Exclusions

Post

Changes to Parent-and-Child and Grandparent-to-Grandchild Transfer Exclusions
(Effective February 16, 2021)

Current laws allow parents, grandparents and children to pass on the existing assessed values of their primary residence and other properties up to $1 million in assessed values without reassessment. However, under Proposition 19 these programs will be limited with fewer tax savings opportunities. See below for the chart developed by the State Board of Equalization to compare the current law and the effects of Proposition 19.

Parent-Child & Grandparent-Grandchild Exclusion

  Current Law Proposition 19

Principal Residence
  • Principal residence of transferor
  • No value limit
  • Residence and homesite (excess land may be excluded as “other property”)
  • Principal residence of transferor and transferee
  • Value limit of current taxable value plus $1,000,000 (as annually adjusted)
  • Family homes and farms

Other Real Property
  • Transferor lifetime limit of $1,000,000 of factored base year value
  • Eliminates exclusion for other real property other than the principal residence

Grandparent-Grandchild Middle Generation Limit
  • Parent(s) of grandchild, who qualifies as child(ren) of grandparent, must be deceased on date of transfer
  • No change: parent(s) of grandchild, who qualifies as child(ren) of grandparent, must be deceased on date of transfer

Filing Period
  • File claim within 3 years or before transfer to third party
  • File for homeowners’ exemption within 1 year of transfer

Implementing Statute
  • Revenue & Taxation Code section 63.1 (implements Propositions 58/193)
  • To be determined

Important Dates
  • Through February 15, 2021
  • Effective February 16, 2021

Alert! If you plan to record a deed before Proposition 19 becomes effective on February 16, 2021, please note that February 15, 2021 is President’s Day, a legal holiday, and our Office is closed. We expect a high volume of document submissions during that time, any discrepancies or errors found in the process may require additional time to clarify or correct, which may cause further delay on the recording timeline. Early recording is highly recommended. 

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BOE-19-G Claim for Reassessment Exclusion for Transfer Between Grandparent and Grandchild Occurring on or after Feb. 16, 2021 BOE-19-G Claim for Reassessment Exclusion for Transfer Between Grandparent and Grandchild Occurring on or after Feb. 16, 2021
BOE-19-P Claim for Reassessment Exclusion for Transfer Between Parent and Child Occurring on or after Feb. 16, 2021 BOE-19-P Claim for Reassessment Exclusion for Transfer Between Parent and Child Occurring on or after Feb. 16, 2021