California

Proposition 19 is a California law that gives an important money-saving benefit to homeowners who are 55 years old or older, as well as people who are severely disabled or affected by wildfires and other natural disasters. Voters approved the law in November 2020, and it went into effect between late 2020 and early 2021.

For homeowners over 55, Proposition 19 can mean huge savings on property taxes when buying a new home.

Normally, when someone sells a home and buys another one, their property taxes go way up because the new home is taxed at today’s higher values. Proposition 19 helps prevent that.

Under this law, eligible homeowners age 55 and older can take their lower property tax value with them when they move and apply it to a new home anywhere in California. This can save homeowners thousands of dollars every year in property taxes.

The new home can even cost more than the old one. If it does, the property taxes may go up a little, but they are still much lower than they would be without Proposition 19.

Another major benefit is flexibility. Eligible homeowners can use this tax-saving benefit up to three times in their lifetime. This makes it easier for seniors to downsize, move closer to family, or relocate without worrying about a big tax increase. For people who lost their home to a wildfire or natural disaster, there is no limit on how many times the benefit can be used.

To qualify, the homeowner must sell their old home and buy or build the new one within two years.

Proposition 19 also changed rules for inherited homes, making those benefits more limited. However, for homeowners over 55 who are buying a new home, the law is widely seen as a strong financial advantage that encourages mobility and long-term savings.

Before buying a new property, homeowners are strongly encouraged to talk with a tax advisor or contact their local county assessor’s office. This helps ensure they qualify, understand the rules, and know how much they could save. Filling out the correct forms on time is required to receive Proposition 19 benefits. More information is available through the California State Board of Equalization.

Shag House in Palm Springs

The Author, Eric Gray, is a REALTOR®️ with Desert Lifestyle Properties, CA DRE 02225444