Have you thought about moving but are worried about property tax increases?
Then I have great news to share with you. There are new tax benefits you could be qualified to take advantage of that will allow you to move without big tax increases.
With the passage of Proposition 19, homeowners who are 55+, severely disabled or victims of wildfire or natural disaster may transfer their property tax base of their existing home to a new home anywhere in California without price restriction. This is a significant improvement from the current law that is confusing, unfair and limiting.
Prop 19 new tax benefits for homeowners 55+, severely disabled, or victims of wildfire or natural disaster, as of April 1, 2021 include:
- Moving anywhere in California: Prop 19 removes location restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home anywhere in California.
- Moving to any home regardless of price: Prop 19 removes price restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home regardless of price (with an adjustment upward to their tax basis if the replacement property is of greater value).
- Transferring the low property tax base of your original home to a new home up to THREE times (or more for victims of wildfire or natural hazard).
This could result in substantial savings in annual property taxes!
These new tax benefits go into effect April 1, 2021.
For transactions involving either the sale or purchase of a primary residence that close before April 1, 2021, please consult with your qualified estate planning or real estate attorney.
Interested in learning more?
CONTACT
Michael Tessaro, REALTOR®
DRE#00868159
INTERO Real Estate Services
C/T: 925-519-9099
Prop 19 Frees Up Inventory While Providing Tax Savings for Seniors, Homeowners with Disabilities, and Wildfire Victims
Effective April 1, 2021, Proposition 19 permits eligible homeowners (defined as over 55, severely disabled, or whose homes were destroyed by wildfire or disaster) to transfer their primary residence’s property tax base value to a newly purchased or constructed replacement residence of any value, anywhere in the state.
Under Proposition 19, a child or children may keep the lower property tax base of the parent(s) ONLY if the property is the principal residence of the parent(s) and the child or children make it their principal residence within one year.
The other component of Proposition 19 allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster, to transfer their lower assessed property value of their primary home to a newly purchased or newly constructed replacement principal residence up to three times (or once per disaster). The tax base may be transferred to a property located anywhere in the state of California. Proposition 19 may affect your next escrow. This estimator will help you estimate the property taxes under Prop 19 quickly and easily!
After wildfires destroyed more than 24,000 family homes in the past few years, wildfire victims have faced massive property tax hikes when relocating to another home.
Prop 19 allows victims of wildfire or natural disaster to transfer the property tax base of their damaged house to a replacement home anywhere in California.
Prop 19 also removed unfair restrictions on Californians with severe disabilities, allowing homeowners to move to a replacement home anywhere in California without a tax penalty.
Under Prop 19, homeowners with severe disabilities can transfer the tax base of their existing home to a replacement home up to three times.
Thanks to Prop 19, seniors, retirees, and all homeowners aged 55+ can move closer to family, medical care, or to a home that better meets their needs anywhere in California without a tax penalty.
Prop 19 removed unfair location and price restrictions, allowing older homeowners to transfer the tax base of their home to a new home.