What California’s Prop 19 Means for Property Owners: A Closer Look at Tax Base Transfers
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At Avenida, we guide clients beyond the transaction, helping them uncover opportunities throughout their ownership journey. One potential opportunity? Proposition 19.

If you’ve heard of “Prop 19” but aren’t quite sure what it means for you, you're not alone. Let’s break it down—what it is, how it works, and where it might apply in your real estate planning.

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What Is Prop 19?

California’s Proposition 19, passed in November 2020 and enacted in April 2021, allows certain homeowners to transfer the taxable value (also called “tax base”) of their primary residence to a new home—potentially reducing their property tax bill in the process.

This change was designed to offer more flexibility to eligible homeowners who want to move but are hesitant due to rising property tax costs.

Who Can Use Prop 19?

To be eligible for a base year value transfer under Prop 19, you must meet one of the following criteria:

• Age 55 or older
  
  
• Severely disabled
  
  
• A victim of a wildfire or natural disaster
  
  

If you qualify, you can transfer the assessed value of your current primary residence to a new home anywhere in California—up to three times in your lifetime (with no limit for disaster victims).

Key Benefits

Here’s where Prop 19 could be especially powerful:

• Move without the tax shock: If your current home has a low tax base due to long-term ownership, Prop 19 may allow you to keep that benefit even when buying a more expensive property.
  
  
• Freedom to relocate: Unlike the previous law, transfers under Prop 19 can occur anywhere within California, not just within the same county.
  
  
• Upsize or downsize: The new home can be of equal or greater value, though adjustments may apply to the tax base for higher-value homes.
  
  

How the Transfer Works (at a Glance)

Let’s say you bought your home years ago and it’s now worth significantly more—but your taxable value is still relatively low. You sell your current home and purchase a new one at a higher market value. Prop 19 allows you to apply your old tax base (with some adjustments) to the new property.

The result? You may pay thousands less in property taxes each year than if your new tax assessment was based purely on today’s market rates.

Important: The new home must be purchased or newly constructed within two years of selling the original residence.

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What About Inherited Properties?

Prop 19 also made changes to how property transfers between parents and children are handled. Now, in most cases, children who inherit a property must use it as their primary residence in order to retain the lower tax base.

If not, the property may be reassessed at current market value—leading to significantly higher property taxes.

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Considerations Before Moving Forward

While the potential savings can be substantial, every situation is unique. It’s important to consider:

• Timing requirements
  
  
• Value thresholds and adjustments
  
  
• Documentation and application deadlines
  
  
• Potential reassessment if the new property exceeds the allowed value differential
  
  

We always recommend speaking with a qualified tax advisor, attorney, or financial planner to understand the full scope of Prop 19’s impact on your personal or family real estate strategy.

How Avenida Supports Your Ownership Journey

At Avenida, we believe real estate should work smarter for you—whether you're planning a strategic move, managing an inheritance, or simply exploring your options. Our advisor-led approach ensures every decision is backed by insight, collaboration, and care.

If you’re curious whether Prop 19 could apply to your next move, we’re here to help you start the conversation—with no pressure, and no one-size-fits-all advice.

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Disclaimer

This blog post is provided for general informational purposes only and does not constitute legal, financial, or tax advice. Readers should consult with a qualified professional regarding their individual circumstances and before making any financial or legal decisions. Avenida is not responsible for actions taken based on this content.

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