One Great Aspect of CA Prop 19

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Filed under: Property Taxes

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Proposition 19 has a few aspects that people have forgotten, which is why I wanted to mention it again in today’s video. There are some awful things in Prop 19 that were snuck through. But there are a few great things about Prop 19 that opened up more options for older homeowners.

How CA Prop 19 Works

This replaced Props 60 & 90 that allowed people over the age of 55 to transfer assessed value to another property. For example, my mom bought her house in the mid-70’s for $70,000, so the tax assessment has her property being assessed around $120,000 right now. Of course, the house is worth a lot more than that.

If she was to sell that property, it means she can bring the assessed value with her to the new property. In a low tax area, a $800,000 house would normally have an annual tax assessment of $8,000. But since she can bring her assessed value from the previous property, the annual tax burden is more like $1,200.

New Changes for Homeowners Over 55+

One notable change now is that you can buy up or down in value, but any amount over the amount you sell your current home for would be fully assessed.

The other thing you need to keep in mind is that Prop 19 allows you to do this three times now, whereas before you could only do it once. It’s likely that someone over the age of 55 will move multiple times, so this is a good change.

Share the News with Friends and Family

It’s a big chunk of the market in this age range, which is why it’s worth mentioning. This proposition applies to anyone over the age of 55 in any part of California. It’s an essential aspect that needs to be discussed for all homeowners in this age range. Unfortunately, a lot of people don’t know about it – which means that they are paying more than necessary in property taxes.

So, I want to share this information to spread the word. Make sure your friends and family keep this in mind if they are nearing retirement and looking to buy a new home – there are county forms that need to be filled out. If you need more info, then check out this link. Also, I’m always here to direct you in the right way and answer your questions, so reach out any time.

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