Prop 19 Explained
Prop 19 has some comparability to Prop 60, as well as multiple applicable uses for property tax. The implications of Proposition 19 could effect your tax base value, or give you tax relief as a victim of a natural disaster. Here's what you need to know:
If someone who qulaifies has an old tax base assessment was $500K, then the home was sold for $1M, and they bought a new home for $2M, their new base tax rate would be $1.5M instead of $2M.
When passing property down to descendants:
According to California Proposition 19, the transfer of property to one’s descendants will incur a reassessment of property tax according to the current market value of the property, with an exemption of up to $1 million.
If the property's current market price exceeds the base tax value by more than $1 million dollars, the new base tax value will have to be adjusted by subtracting $1 million from the current value of the home.
If a property's tax base value was $300K and the home is now worth $1.2M, then the tax base value remains unchanged upon filing for exemption, since the difference between the TBV and current market value is less than $1M.
In the case that a property had a base tax value of $100K, and the market price of the home is now $1.2M, then the new base tax value would be $200K since the difference between the old TBV and current market price is more than $1M.
How Prop 19 differs from Prop 60:
- Prop 19 can be used anywhere in California, as opposed to only within the same county
- It can be implemented up to 3 separate times, compared to only once
- The motion qualifies for new properties of any price, instead of only that of equal or lesser value
Both Prop 19 and 60 require:
- The properties in question to be the primary residence of the homeowner
- The new property to be purchased or have started construction within two years of the sale of the prior home
*Sourced from California State Board of Equalization
*This data is compiled from public information and is deemed reliable but not guaranteed.
Post a Comment