Proposition 19 and its impact on Real Estate

WHAT IS PROP 19 IN CALIFORNIA?

California Proposition 19 is a new regulation that was passed in the recently held November elections with a 51% voting YES bringing new changes on property tax rules and exemptions. Proposition 19 seeks to amend Proposition 13 together with the 1978 law that limited property taxes.

Although some of us have voted no on this proposition, lets look on the bright side and check out the positives:

5 PROS OF PROP 19:

• All eligible homeowners will now be able to transfer their tax basis anywhere within the State and also to a property that has a greater value. Earlier, homeowners were limited to transferring their tax basis to certain counties only and also to properties of the same or lesser value.

• It increases the number of times people can transfer their tax assessment from just one time to three times.

• It requires market-value reassessments for inherited properties that are not currently used as the heir’s principal residence.

• Property owners aged 55 years and above will now be to combine the taxable value of their old home with the value of a new and a more valuable home is something which will boost property tax savings.

• It proposes and is an establishment of a fire protection services fund.