Proposition 19 Tax Benefits for Seniors

If you’ve wanted to downsize your home to purchase a new home, you’ll be able to bring your lower property tax rates with you.

With the passage of Proposition 19, a homeowner who is over 55 years of age, severely disabled, or whose home has been substantially damaged by wildfire or another natural disaster may transfer the taxable value of their primary residence to a replacement primary residence that is:

● Located anywhere in the state of California

● Regardless of the value of the replacement primary residence (with adjustments if the replacement is “greater” in value)

● Purchased within two years of the sale

● The transfer can be used up to three times (but without limitation for those whose primary residence is destroyed by fire).

Proposition 19 supersedes prior state laws which had limited the ability to transfer one’s tax base to people 55 years of age or older but it could only be used one time and both the sale and purchase of the principal residence had to occur within the same county (Proposition 60) or between certain counties which had agreed to the transfer (Proposition 90) -- but only if the replacement property was of “equal or lesser value.”

For a more detailed summary of this law that has been created by the California Board of Equalization (“BOE”), go to the BOE website at: https://www.boe.ca.gov/prop19/

This information is provided solely for general information and should not be relied upon by anyone for any specific situation. You are advised to consult with your own qualified California tax and/or legal professional as to the potential effect that this law may have on your situation and then you should rely solely on that advice.