California Proposition 19, also known as the Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, is a Constitutional Amendment that introduces new restrictions on property tax benefits for inherited family properties.

Under Proposition 19, a child or children can retain the lower property tax assessment of their parent(s) ONLY if the property currently serves as the primary residence for the parent(s) and the child or children establish it as their primary residence within one year of taking ownership. Parent to child and grandparent to grandchild exclusions have a new value limit of current taxable value plus $1,000,000 (biennially adjusted). The value was previously unlimited.

Another big feature of Proposition 19 is that it allows homeowners who are age 55 years or older, disabled, or victims of a wildfire or natural disaster to transfer the lower assessed value of their primary home to a newly purchased or newly constructed replacement primary residence up to three times (or once per disaster).

This amendment expands on previous Props 60/90, where only certain counties were covered, now allowing for transfers to properties located anywhere in California. It also creates a new “blended” tax rate to allow for properties to be purchased for more than the existing primary residence sells for. Previous law only provided for newly purchased properties to be of equal or lesser value than the property being sold, which made it increasingly difficult to qualify for its benefits in our ever-changing market.

Not quite sure what your blended rate will look like? Make use of our calculator for a quick and easy estimation of property taxes under Prop 19!

If you meet the eligibility requirements, Proposition 19 might impact your upcoming escrow and title transaction. Escrow may require additional documentation if you intend to transfer the current taxable value of the property.

*Prop 19 calculations utilize the Prop 13 cap to calculate the new property taxes under this program. If your assessed value has been reduced based on Prop 8, the Mills Act or any other programs, the calculations will not be based on that reduced valuation.

**If the replacement home is of equal or lesser value than the original home, the original home’s factored base year value may be transferred to the replacement home without incurring any value adjustment. Generally, “equal or lessor value” means:

• 100% or less of the full cash value of the original home if a replacement home is purchased or newly constructed before the sale of the original home, or
• 105% or less of the full cash value of the original home if a replacement home is purchased or newly constructed within the first year after the sale of the original home, or
• 110% or less of the full cash value of the original home if a replacement home is purchased or newly constructed within the second year after the sale of the original home.

*This Prop 19 calculator is provided as a courtesy of Monarch Title. It is for estimates only based on the California Association of Realtors’ analysis of Prop 19. Always consult a tax attorney, estate planner, or the County Assessor’s office for the most accurate figure. By using this calculator, you accept these terms and conditions. Monarch Title and its affiliates are not responsible for any loss or damage due to the use of this calculator, or any information contained herein.