As the real estate market continues to evolve, it’s essential for homeowners to stay informed about key changes in property tax laws. One of the most significant changes in recent years is Proposition 19, a California law designed to provide benefits for homeowners, especially those over the age of 55, severely disabled, or affected by wildfires or natural disasters.

As your trusted real estate professional, I’m here to break down how Proposition 19 can help you navigate these changes and make the most of the opportunities available.

What is Proposition 19?

Proposition 19, which became effective on April 1, 2021, allows homeowners to transfer the taxable value of their current primary residence to a replacement home anywhere in California. This provision applies to homeowners who are over 55 years old, severely disabled, or victims of a wildfire or natural disaster.



This law offers more flexibility than ever before, allowing homeowners to purchase or build a new home without worrying about a significant increase in property taxes. It also helps homeowners avoid a large jump in taxes when moving to a new home of greater value.

1. Transfer Your Property Tax Base Anywhere in California

Previously, if you wanted to transfer your property tax base (the value used to calculate your property taxes) to a new home, you could only do so within the same county or in counties with specific ordinances. But with Proposition 19, homeowners can transfer their property tax base anywhere in California. This is particularly beneficial for those looking to relocate to a different city, area, or county while maintaining the same property tax rate.

2. Flexibility for Homeowners Aged 55 and Older

Under Proposition 19, homeowners who are 55 years or older can transfer the taxable value of their current primary residence to a new home up to three times during their lifetime. Whether you’re looking for a smaller property after retirement or a more spacious one to accommodate your growing family, Proposition 19 gives you the ability to make the transition without the burden of a high tax increase.

3. Helping Those with Disabilities or Affected by Natural Disasters

If you are severely disabled or have experienced a wildfire or natural disaster, Proposition 19 offers a lifeline. Homeowners in these situations can transfer their property tax base to a replacement home, ensuring that they don’t face financial hardship when rebuilding or relocating.

This provision is especially timely for those in areas affected by California’s frequent wildfires. By transferring the taxable value of the destroyed home, homeowners can rebuild and move into a new property without being penalized with increased taxes.

4. Inherited Property Tax Benefits

Another important aspect of Proposition 19 is the inheritance tax changes for children and grandchildren. Before Proposition 19, homeowners could transfer the taxable value of their property to their children or grandchildren without them facing a significant increase in property taxes. However, Proposition 19 narrows this exemption and requires the inherited property to be the principal residence of the child or grandchild for them to benefit from the tax break.

If your child or grandchild intends to inherit your home, they must also live in it and use it as their primary residence, and the property must have a market value over $1 million for any adjustment to occur.

How Can Homeowners Take Advantage of Proposition 19?

If you meet the eligibility requirements for Proposition 19, here are a few actionable steps to make the most of the opportunities:

1. Start the Process Early

The earlier you start the process, the better. Whether you are looking to transfer your property tax base or planning for an inheritance, it’s crucial to understand the requirements and gather the necessary documents before making any moves.

2. Consult with a Real Estate Expert

Navigating Proposition 19 can be complex, but working with a real estate professional like Debbie Gates ensures you get personalized guidance and expert advice. Debbie can help you understand the nuances of Proposition 19 and guide you in making informed decisions.

3. Plan for Your Future

Proposition 19 offers a unique opportunity for homeowners to make strategic moves for their long-term plans, whether it’s downsizing, relocating, or planning for the future of their family. Debbie can assist with evaluating your needs and finding a property that fits your goals while taking full advantage of the tax benefits.

Proposition 19 has opened up new possibilities for homeowners across California. By staying informed and taking action now, you can make the most of these changes and secure a brighter future for you and your family. As a trusted real estate expert, Debbie Gates is here to ensure that you make the best choices for your property and your financial future.



Let’s start your journey today—reach out to us to explore your options under Proposition 19.