Although the newly approved Prop 19 is not very favorable to property taxes, it will be favorable in changes to proposition 60 and 90 and how it will apply to seniors and disaster victims. The current law allows seniors 55 years old and older and the disabled to transfer their current property tax basis to a new property with any value. Prop 19 will make minor but favorable changes to this current law.
The current law allows the disabled and seniors 55 years old or older to transfer the tax basis of their personal residential properties. The new law still applies to personal residence but includes a new group of candidates.
To Whom Prop 19 Applies
Current Law: Applies to those who are disabled and 55 years old or older.
New Law: Expanded to include victims of natural disaster and those who live in natural disaster-prone zones in addition to the previously listed groups.
Prop 19 Changes on Timing
Current Law: Purchase or construct residence within 2 years of old property’s sale.
New Law: Same as current law.
Location
Current Law: Limits location of replacement home only to county in which it is located.
New Law: Replacement home can be anywhere in California, making it possible to take previous tax amount.
Limits
Current Law: Allows you to purchase a second property of equal or lesser value than your primary residence value.
New Law: You may purchase a second property of any value but an amount over 100% is added to the transferred value.
Transfer Limit
Current Law: Allows 1 transfer for age and 1 transfer for subsequent disability.
New Law: Allows 3 transfer times.
Effective Date: April 1, 2021
