🏠 California Proposition 19 Explained

Why Prop 19 Matters to Every California Homeowner

California Real-Estate isn’t just about location and price — it’s also about property taxes. Homeowners who bought decades ago often enjoy ultra‑low tax bases thanks to Proposition 13 (1978). When these owners sell, a replacement home would usually be reassessed at full market value, leading to much higher annual property taxes.

Proposition 13 (1978): The Rule Prop 19 Builds On

Why it matters: Long‑time homeowners often have tax bases far below current market value. Prop 19 determines when and how that low base can be transferred or preserved.

• Requires reassessment to current market value when ownership changes (sale/transfer) or after major new construction.
• Limits annual increases in assessed value to no more than 2% while you own the property.
• Caps the general property tax rate at about 1% of a home’s assessed value (plus local voter‑approved add‑ons).

Proposition 13 is the foundation of California property taxes. Passed in 1978, it:

That’s where California Proposition 19 (Prop 19) comes in. Passed in November 2020, this constitutional amendment reshaped two big areas of property taxation:

• 💸 Tax base transfers for seniors, disabled homeowners, and disaster victims (expanded).
• 🏡 Inheritance rules for primary residences transferred to children or grandchildren (restricted).

Below is an updated, step‑by‑step guide to Prop 19 compliance, deadlines, calculation rules, and the forms you need to claim your exclusion.

📅 Prop 19 Key Dates at a Glance

Proposition 19 introduced two major changes, each with its own effective date:

If your transfer occurred before these dates, older Prop 58 / Prop 60‑90 rules may apply instead.

Proposition 50 (1986): Disaster‑Related Tax Base Transfers

How Prop 19 changed this: Beginning April 1, 2021, Prop 19 expanded disaster victim transfers statewide, so eligible owners may move to a replacement primary residence anywhere in California (subject to county administration).

to transfer their existing tax base to a comparable replacement home within the same county.

Proposition 50, approved in 1986, allows homeowners whose property is substantially damaged or destroyed in a Governor‑declared disaster

Part 1: 💸 Prop 19’s Expanded Tax Base Transfer (Seniors, Disabled & Disaster Victims)

This is the “good news” side of Prop 19. It replaced the more restrictive Prop 60/90 system and gives eligible homeowners far more flexibility to move without losing their low property tax base.

✅ Who Qualifies?

• Homeowners age 55 or older.
• Homeowners who are severely disabled.
• Homeowners whose property was lost or substantially damaged in a wildfire or declared natural disaster.

✨ What You Get

• You may transfer your existing (low) property tax base to a replacement primary residence anywhere in California.
• You can use this benefit up to 3 times in your lifetime (disaster victims usually get 1 transfer).

⏳ Timing Requirement (Very Important)

The replacement property must be purchased or newly constructed within 2 years of selling your original home.

If Your New Home Costs More

• If the replacement home is equal or lower value, you keep the full old tax base.
• If the replacement home is higher value, the difference is added to your old base to form a new taxable value.

📝 Official Form + Deadline

To claim the senior/disabled/disaster tax base transfer, file:

Timing Requirement: The replacement property must be purchased or newly constructed within two years of the sale of the original home.

• BOE‑19‑B — Claim for Transfer of Base Year Value to Replacement Primary Residence.
• Where to file: with the County Assessor where the replacement home is located.
• Deadline: within 3 years of purchase or new construction completion (file early when possible).

Example: Downsizing Without a Tax Shock

A Pasadena homeowner who purchased in the 1980s has a very low assessed value. Under Prop 19, they can sell and buy a smaller home in another county and carry their low tax base with them — often saving thousands per year compared with a full reassessment.

📌 Pro Tip: Talk to a Realtor before you list your home. The order of events and timing can make or break the transfer.

Part 2: 🏡 Prop 19 Inheritance Rules (Parent–Child / Grandparent–Grandchild)

This is the “new limits” side of Prop 19. For transfers after February 16, 2021, heirs do not automatically keep the old low tax base unless they meet specific requirements.

Before Prop 19 (Old Rule)

Children could inherit a primary residence (and, in some cases, additional property) and keep the parent’s tax base even if they didn’t live there.

After Prop 19 (New Rule)

To keep the low tax base on an inherited primary residence, all three (3) conditions must be met:

LA County confirms the “primary residence” requirement through a Homeowners’ Exemption (or Disabled Veterans Exemption) filed on the inherited home.

1. They move in. The child/transferee must use the property as their primary residence.
2. They file on time. A claim must be filed within 1 year of the date of transfer.
3. The value cap applies. If market value exceeds the factored base year value plus the cap amount, the excess is added to the new taxable value.

📈 The 2025–2027 Value Cap (Updated)

For transfers occurring February 16, 2025 through February 15, 2027, the cap is:

Factored Base Year Value + $1,044,586

How to Apply (Inheritance Claims):

• BOE-19-P — Claim for Reassessment Exclusion for Transfer Between Parent and Child (file with the county where the inherited home is located).
• BOE-19-G — Claim for Reassessment Exclusion for Transfer Between Grandparent and Grandchild (only applicable when both parents are deceased; file with the county where the inherited home is located).

Prop 19 inheritance rules are implemented under Revenue & Taxation Code §63.2; base-year transfers are implemented under §69.6 (SB 539, effective Sept. 30, 2021).

Required Documents (common county checklist):

• Recorded deed or transfer document showing date of transfer.
• Most recent property tax bill showing the factored base year value.
• Proof the child occupies the home as a principal residence (Homeowners’/Disabled Veterans Exemption, ID, utility bills).

Quick Inheritance Example (Simple Math)

• Parent’s factored tax base: $300,000
• Current market value at transfer: $1,600,000
• Cap allowance: $300,000 + $1,044,586 = $1,344,586
• Excess above cap: $1,600,000 − $1,344,586 = $255,414
• New taxable value (if child moves in + files): $300,000 + $255,414 = $555,414

If the child does **not** move in and claim the exclusion, the property is fully reassessed to market value.

⚠️ Warning: The inheritance claim deadline is only 1 year. Missing it can trigger a full reassessment.

✅ Who Wins and ❌ Who Loses Under Prop 19?

Winners

• Seniors 55+ who want to downsize or relocate.
• Disabled homeowners needing easier flexibility.
• Disaster victims rebuilding.
• Buyers in tight markets (more seniors listing).

Losers

• Families inheriting high‑value homes they won’t live in.
• Heirs planning to keep rentals/vacation homes at old tax rates.
• Anyone who misses filing deadlines.

❓ Prop 19 FAQs

Q: Can I transfer my tax base to another county?

A: Yes. Prop 19 allows eligible homeowners to transfer their tax base to a replacement primary residence anywhere in California.

Q: How many times can I use Prop 19?

A: Up to three times for seniors and severely disabled homeowners.

Q: Do I have to buy a cheaper home?

A: No. If you buy a more expensive home, the price difference is added to your old tax base.

Q: Does Prop 19 reduce capital gains taxes?

A: No. It changes property tax assessments, not capital gains taxes.

Q: What happens if I miss the inheritance deadline?

A: You may lose the exclusion and the home can be reassessed at full market value.

📌 Practical Tips to Protect Your Tax Savings

• Plan before you sell. If you’re 55+, Prop 19 can save tens of thousands over time.
• You should continue paying property tax bills while your Prop 19 claim is processed. If approved, the Assessor will issue corrected bills or refunds.
• If you inherit a home, decide quickly whether you will move in.
• File claims immediately after transfer — counties can be strict.
• Coordinate with a Realtor and estate planner who understand Prop 19 strategy.

Bottom Line

Prop 19 is one of the biggest property tax changes California has seen in decades. It gives seniors and qualified owners powerful flexibility to move, while requiring heirs to make clear "live‑in or reassess" decisions.

If you’re considering selling, buying or inheriting a property in Los Angeles or Orange County, I’m happy to run your scenario and show you the real tax outcome before you make a move.

Andrew Mehta, Realtor®

Rise Group at Real Brokerage

Call/Text: 310‑871‑9817