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 expands the Proposition 60 and Proposition 90 by allowing 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. This provision is effective 4/1/2021.
At the same time, Proposition 19 severely limits the parent-child and grandparent-grandchild transfer exclusion for property reassessment set forth in Propositions 58 and 193. Under the new laws, family members who inherit properties can keep the low property tax base only if they use the home as their primary residence. The primary home reassessment exclusion is further limited to $1Million in value. This new restriction is effective 2/16/2021.
Please contact Satori Law Group if you have any questions on Proposition 19.