Hi guys! It’s Jessica Wallace, your Santa Cruz REALTOR. I wanted to tell you briefly today about Proposition 19 in California and what it can mean for you and your family.
One of the things that Proposition 19 will do is that if you are over 55 and you own a home and you sell it and you move somewhere else in California you get to keep your property tax basis with you.
A lot of people that are older in California have owned their homes for decades sometimes. They have very low taxes, property taxes, and now you could take those property taxes with you to a new home.
So it’s gonna allow people over 55 to move a little bit more freely throughout the state and keep their nice low property taxes.
Another thing that Proposition 19 does that is totally different from the 55 and over is that the parent to child transfer of property used to not trigger a property tax reassessment.
So, starting on February 16, 2021, if you inherit a property from your parent, your property taxes on this home will likely be reassessed and go much higher unless you, yourself, move into the house as your primary residence.
So it used to be that you could inherit a rental property or a vacation home and you would keep the low property taxes. In California, that is going away, for now, due to Proposition 19.
This law starts on February 16th, 2021. You have a little bit of time to make some changes with your family. If you need to, talk to a state attorney. If you need a referral, let me know about what your options are. But the parent to child transfer of property and the exemption for reassessment of property taxes is going to be going away.
So let me know if you have any questions about Prop 19. If you need a referral to a state attorney, a CPA, I’m happy to help. Have a great day.