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Prop 19 | Benefits Fact Sheet


Proposition 19 Benefits Your Clients

California Homeowners Can Realize Significant Annual Property Tax Savings

Prop 19 removes location and price restrictions to allow homeowners who are 55 or older, severely disabled, or victims of wildfires or natural disasters to:

Prop 19 Tax Base Transfers Start April 1, 2021

Prop 19 Tax Savings Examples

Buying a Home Across County Lines: If the sale price of the existing home is the same as (or less than) the purchase price of the replacement home, the new taxable value of the replacement home is the same as the original residence.

Buying a More Expensive Home: If the sale price of the replacement home costs more than the price of the existing home, qualified homeowners can blend the tax base of their original home with the tax base of the new home. The new, adjusted property tax base of the replacement home takes the tax base of the original home and adds the difference between the sale price of the new home and the original home.

Applying for the Prop 19 Homeowner Property Tax Exemption

The information contained herein is intended to provide general information and is not intended as a substitute for individual legal advice. Specific examples used are only general examples, and the actual amount of property taxes owed for any person will depend on the specific situation of the individual and a wide variety of other factors. Therefore, all persons are directed to seek the advice of an attorney regarding their specific tax and legal situation.

Prop 19 | Frequently Asked Questions


NOTE: No real estate licensee should provide advice relating to estate planning or other transfers. All questions from your client, and all questions regarding a licensee’s own properties, should be referred to a qualified estate planning or real estate attorney.

How does Proposition 19 benefit California’s housing market, provide tax savings for homeowners and create new homeownership opportunities?

What are the new rules for homeowners to transfer their low property tax base to another home under Prop 19?

Who is eligible to access these new tax benefits?

How does Prop 19 work when purchasing a new home for the same price (or less) than the original home?

Transferring Tax Benefits to a New Home Across County Lines: If the sale price of the existing home is the same as (or less than) the purchase price of the replacement home, even if the replacement home is in another county, the tax base of the replacement home is the same as the original residence.

How does Prop 19 work when purchasing another home that costs more than the sales price of the original home?

Transferring Tax Benefits for a New Home that Costs More: If the sale price of the replacement home costs more than the price of the existing home, qualified homeowners can blend the tax base of their original home with the tax base of the new home. The new, adjusted property tax base of the replacement home takes the tax base of the original home and adds the difference between the sale price of the new home and the original home.

When can eligible homeowners begin to use Prop 19 property tax transfers?

Can homeowners still take advantage of Prop 60 (intra-county) and Prop 90 (inter-county), which allow seniors to transfer the base value from their current home to a replacement property if certain requirements are met?

Yes. Currently, the provisions of Prop 60 and 90 are still in effect until April 1, 2021. For more information, go to: https://www.boe.ca.gov/proptaxes/prop60-90_55over.htm.

What counties participate in Prop 90?

As of November 7, 2018, the following 10 California counties allow intercounty base transfers: Alameda, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne, and Ventura.

What was the law before the enactment of Prop 19?

Under Prop 60 and Prop 90, seniors and disabled homeowners faced location and price limits, were restricted to transfers within the same county (with some exceptions), could only transfer if the price of the replacement home was less than or equal to the value of the original home, and were only allowed one transfer.

Are family farms included in Proposition 19?

Yes, family farms have the same exemptions as family homes (principal residences). “Family farm” means any real property under cultivation or which is being used for pasture, or grazing, or that is used to produce any agricultural commodity.

The information contained herein is intended to provide general information and is not intended as a substitute for individual legal advice. Specific examples used are only general examples, and the actual amount of property taxes owed for any person will depend on the specific situation of the individual and a wide variety of other factors. Therefore, all persons are directed to seek the advice of an attorney regarding their specific tax and legal situation.

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