Proposition 19: The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.

Approved by voters on November 3, 2020, it offers important property tax benefits to eligible homeowners. The law has two distinct components:

  • Base Year Value Transfers – effective 4/1/2021 – expands benefits for eligible homeowners.
  • Parent/Child Exclusion – effective 2/15/2021 – modifies benefits for inherited propertie

Proposition 19 makes it easier for eligible homeowners to transfer their property’s assessed value (Prop 13 value) to a new home. This helps homeowners relocate without facing a significant property tax increase.

Who Qualifies?

  • Seniors – those 55 years or older
  • Permanently and Severely Disabled
    • As defined in Revenue and Taxation Code 74.3
    • Requires physician certification
  • Victims of Wildfires or Natural Disasters
    • Must be a Governor-declared disaster
    • Timing is based on when a property is sold/purchased, not the date of the disaster
    • Two other disaster-related base year transfer options may apply – use whichever is most beneficial

Benefits

  • Move Anywhere in California – No location restrictions
  • Higher-Value Homes Allowed – If the new home is of higher value, the difference in value is added to the transferred assessed value
  • Multiple Transfers - Eligible homeowners can transfer their assessed value up to three times (six times for married couples).
  • Includes ADUs & JADUs – A primary residence can now include an Accessory Dwelling Unit (ADU) or Junior ADU (JADU). 

Qualifications for Senior Base Year Value Transfers

  • Age Requirement – At least 55 years old at the time the original property is sold.
  • Primary Residence – Both the original and replacement properties must be your principal residence and qualify for either the Homeowners' Exemption or Disabled Veterans' Exemption.
  • Timing – The replacement home must be purchased or newly built within two years of selling your original home. The sale and purchase can happen in either order although the timing may impact your new tax basis (See: When timing matters).
  • Filing Deadline – You must file a Prop 19 claim form (BOE 19-B) with the Assessor’s Office in the county where your replacement home is located within three years of the purchase.

When Timing Matters

Under Prop 19 the sale and purchase of a primary residence can happen in either order, as long as they are within two years of each other.  However, there are situations where the timing can impact value/taxes:

  • Selling First – May save 5-10% on increased assessed value if buying a higher-value replacement property
  • Buying First – Temporary tax increase may occur until original home is sold
  • Inherited Property –  Timing can be critical to preserving a reduced assessed value you inherited from a parent. Please contact our office to discuss your specific situation.

Filing Deadline

You must file your claim within three years of purchasing your replacement home. Claims submitted after the three-year period may still be accepted; however, late approvals only apply prospectively and will not adjust prior tax years.

Submit your claim after you have moved into your replacement home. This means:

  • Your original property has been sold,
  • Your replacement home has been purchased or newly constructed, and
  • You are occupying the replacement home as your primary residence.

HOW TO APPLY

Submit your claim after you have moved into your replacement home. This means:

  • Your original property has been sold,
  • Your replacement home has been purchased or newly constructed, and
  • You are occupying the replacement home as your primary residence.

BOE 19-B

Maximize Savings – Be sure to apply for either the Homeowners’ Exemption or Disabled Veterans’ Exemption on your replacement property to lower your property taxes even further.

Homeowners' Exemption Claim Form Disabled Veterans' Exemption Claim

Proposition 19 modifies the inheritance reassessment exclusion, limiting certain property tax benefits for inherited properties.

Qualifications

  1. Parent’s Primary Residence –  Must have been the parent’s primary residence (eligible for the homeowners’ exemption or disabled veterans’ exemption).
  2. Child’s Primary Residence – At least one eligible child must move into the property and establish it as their primary residence, within one year of the transfer* If an eligible heir does not occupy the property within one year, the exclusion is permanently lost.
  3. Exemption Filing – The child must file either a Homeowners’ or Disabled Veterans’ Exemption within one year of the transfer.*
  4. Grandparent/Grandchild Exclusion – Only applies if the parent(s) of the grandchild (the intervening generation) are deceased on the date of transfer. (Requires death certificate of intervening parent).  
  5. Family Farm Transfers – Transfers must become the family farm of an eligible transferee within one year. 

Value Limit

There is a limit to the value that can be excluded for a family home or each legal parcel of a family farm. The value limit is equal to the property's taxable value at time of transfer plus $1 million.  The $1 million limit is adjusted for inflation biennially, beginning in February 2023. Market Value Limit Adjustments:

  • 2/16/2021 — $1,000,000
  • 2/16/2023 — $1,022,600
  • 2/16/2025 — $1,044,586

Filing Deadline

To qualify for relief from the date of transfer, a Prop 19 claim form must be filed with the County Assessor within three years of the transfer date, but before transferring to a third party.

HOW TO APPLY

  1. Appropriate Prop 19 exclusion claim form(s):
    BOE 19-B  Parent-Child
    BOE 19-G Grandparent-Grandchild
  2. Homeowners' Exemption Claim form or Disabled Veterans' Exemption Claim Form:
    Homeowners' Exemption Claim Form
    Disabled Veterans' Exemption Claim
  3. If the transfer was due to a death, you must also file a:
    Change in Ownership Statement – Death of Real Property Owner
  4. If the transfer was through the medium of a will and/or trust, you must attach a full and complete copy of the will and/or trust and all amendments.
  5. If the transfer was through probate, the probate order must be recorded.

Questions? We’re Here to Help

Our goal is to apply state law fairly, consistently, and accurately.  If you have questions about how your project may be assessed, please contact our office.