Page 8 - Seller Resource Guide

CALIFORNIA

PROPOSITION 19

Proposition 19 amends the California Constitution
by adding sections that provide further expansion
and qualifications regarding limitations on property
tax increases for persons over 55, the severely
disabled, victims of wildfires or other natural
disasters (collectively referred to as “eligible
homeowners”) and transfers of certain inherited
properties.

These new changes may affect your next escrow, if
eligible. Additional forms may be required if you plan
to transfer your tax basis for an eligible transaction.

Eligible Homeowners
Effective April 1, 2021, location restrictions will be removed allowing eligible homeowners to:
• Move Anywhere in the State - The taxable value of a primary residence may be transferred to a replacement primary
residence anywhere within the state, as long as it is within two years of the sale of the original primary residence.

• Purchase a More Expensive Home - A home of greater market value may be purchased without incurring a substantial
increase in taxable value. The property tax bill would still go up but not by as much as it would for other homebuyers.

• Increase the Use of the Transfer - Homeowners who are over 55 or severely disabled could transfer the property’s
taxable value up to three times in their lifetime.
Inherited Properties
Effective February 16, 2021, the following qualifications will apply to inherited properties:

• Continued Use as Primary Residence or Family Farm - The reassessment exemption on inherited properties would
apply only if the property is used by the child (or grandchild under certain circumnstances) as their primary residence,
or if the property is a family farm. Properties used for other purposed would not qualify for the exemption.
• Increase for High Value Inherited Homes and Farms - If the current market value of an inherited property exceeds
the parent’s taxable value by more than $1 million, then the child taxable value shall be assessed as the current
market value less $1 million*.

*The State Board of Equalization shall adjust the $1 million amount of
inflation beginning on February 16, 2023 and every two years thereafter.
OR1449-DI | 04/2021 | ©2021 Old Republic Title | Old Republic Title
is providing this information as a free client service and makes no
warranties or representations as to its accuracy.
Old Republic strongly recommends that consumers obtain guidance and
advice from attorneys specializing in Real Property Tax and/or qualified
Real Property Tax professionals to get more detailed, and current, on real
property taxation as to any matters directly affecting them.

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