Californians, get ready for some good news!
CA VOTERS PASSED PROPOSITION 19
This provides needed housing and tax relief for seniors, wildfire victims, and generating much needed revenue for schools, fire districts, cities and counties as they face budget shortfalls due to the harmful economic impact of COVID-19.
A Tax Increase As Well As A Tax Benefit.
- Includes people 55 or older, people disabled and people affected by a natural disaster.
- You could move your low tax base to a more expensive home and only pay higher property tax on the difference.
- You could use this tax base benefit up to three moves.
- You could move to a new home anywhere in the state of CA without losing your lower tax base.
A Tax Hike Related To Property Taxes Tied To Inheritance
Anyone who inherits a home from their parents or grandparents would only be allowed to keep the low property taxes if they use the home as their primary residence.
Provide an upward tax assessment, adjusted for inflation after February 16, 2023, to owner- occupied inherited properties with a market value more than $1 million greater than its taxable value.
- Most new taxes will be dedicated to statewide fire protection, schools and local governments.
What does this mean for me?
Homeowners who are over 55, disabled, and those who have lost their homes in a natural disaster are now able to transfer their primary residences’ tax assessment to a more expensive home three times (instead of the previous one-time allowance). Alongside this change, Proposition 19 also eliminates an inheritance property tax break that previously allowed children of homeowners to keep their parents’ low property tax assessments unless they use the home as their primary residence.
An upward tax assessment, adjusted for inflation after February 16, 2023, will also be provided to owner-occupied inheritance properties with a market value more than $1 million greater than its taxable value.
What does this mean for California?
Revenue from Proposition 19 will go toward establishing a new state Fire Response Fund, schools, cities, and counties as they face budget shortfalls due to the economic impact of COVID-19.
Move to a new home anywhere in the state without losing your lower tax base– and help California win in the fight against COVID-19 at the same time!