What is Proposition 19?

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. Prop 19 allows the following homeowners to transfer their primary residence’s tax base to a replacement residence: 

– Over the age of 55 
– Disabled 
– Wildfire/disaster Victims 

In addition, the proposition changes taxation of family-property transfers, as well as establishes a fire protection services fund. 


When does it go into effect? 

Proposition 19, which was passed by the California voters on November 3, 2020, became effective on December 16, 2020, the 5th day after the Secretary of State certified the election.

Other key dates:
– February 16, 2021 | Changes to the parent child and grandparent-grandchild exclusion became operative and apply to transactions
– April 1, 2021 | Base year value transfer provisions became operative 


More information...

How Proposition 19 changes the rules governing tax assessment transfers?

Eligible homeowners can now transfer their tax assessments anywhere within the state and allow tax assessments to be transferred to a more expensive home with an upward adjustment. The maximum number of times that a tax assessment can be transferred increased from one to three for persons over 55 years old or with severe disabilities (disaster and contamination victims are still only allowed one transfer).


How does Proposition 19 affect inherited properties?

The propositon eliminates the parent-to-child and grandparent-to-grandchild exemption in cases where the child or grandchild does not use the inherited property as their principal residence (e.g. using a property as a rental house or a second home). When the inherited property is used as the recipient's principal residence, but is sold for $1 million more than the property's taxable value, an upward adjustment in assessed value would occur. 


What did Proposition 19 do with changes in revenue?

The ballot measure created the California Fire Response Fund (CFRF) and County Revenue Protection Fund (CRPF). The California Fire Response Fund is used to fund staffing for fire suppression as well as full-time station-based personnel. The  County Revenue Protection Fund is used to reimburse counties for revenue losses related to the measure's property tax changes.

Source: Ballotpedia