The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act
We at HJTA are saddened to report that Proposition 19 has passed. Although this measure will expand “portability” of property tax base-year value, allowing homeowners over age 55 more opportunities to move to a replacement home while keeping their prior home’s lower tax bill, the downside is that this measure has repealed Proposition 58 (1986) and Proposition 193 (1996). The loss of these constitutional amendments means property will be reassessed to market value when it is transferred from parents to children, and sometimes from grandparents to grandchildren. The only exception is if the person to whom the property is transferred moves in within one year and the property is that person’s principal residence.
Proposition 19 is NOT RETROACTIVE, so if you inherited property in the past, your property tax bill WILL NOT BE AFFECTED.
Proposition 19 is effective for parent-child transfers that occur AFTER February 15, 2021.
Proposition 19 is effective for property tax base-year transfers ON or AFTER April 1, 2021.
(Please note that February 15 is a state and federal holiday and government offices will be closed.)
As always, before making any changes to the title of your property, be sure to consult a trusted attorney, accountant or estate planning professional. There may be tax consequences — apart from property taxes — such as capital gains or gift tax liability. Unfortunately, HJTA cannot give individual legal or financial advice.
Please be very cautious if you receive high-pressure solicitations by phone, mail or e-mail offering legal or financial services in connection with changing the title of your property. These may be scams.
HJTA is exploring all options for reversing the tax increase in Proposition 19. We will work with members of the Legislature to introduce and advance an Assembly Constitutional Amendment or Senate Constitutional Amendment to restore the provisions of Proposition 58 and Proposition 193 to the state Constitution. If you would like to call state lawmakers and urge them to put the parent-child tax protections back in the Constitution, you can find the names and contact information of your representatives at http://findyourrep.legislature.ca.gov or in the government pages of your local White Pages directory.
The State Board of Equalization, which oversees property tax administration, has created an information page that answers many questions about Proposition 19. You can find it here: https://www.boe.ca.gov/prop19/
If you have not already subscribed to HJTA’s e-mail alerts, please sign up right now at: https://www.hjta.org/take-action/updates-by-e-mail/
We will keep you informed of developments. Thank you for your support.