Prop 19 Explained - Guide for Buyers and Sellers to Save $ on Property Taxes
Many California buyers and sellers are about to save big money on California property taxes! Proposition 19, the “Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act,” passed in November 2020 and eligible California sellers are able to transfer the property tax basis for primary residence, which could mean big savings on California property taxes!
Here’s what we answer and more:
And don’t worry, we get out our trusty whiteboard to show how to calculate California property taxes on a replacement primary residence under Proposition 19!
If you have questions about Prop 19 or you’re ready to take advantage of the valuable California property tax exemption for seniors, the severely disabled and victims of wildfire and natural disasters, we are here to help! Reach out here
Severely Disabled - For property tax purposes, a severely and permanently disabled person is defined as "any person who has a physical disability or impairment, whether from birth or by reason of accident or disease, that results in a functional limitation as to employment or substantially limits one or more major life activities of that person, and that has been diagnosed as permanently affecting the person's ability to function, including, but not limited to, any disability or impairment that affects sight, speech, hearing, or the use of any limbs."
Natural disaster - means the existence, as declared by the Governor, of conditions of disaster or extreme peril to the safety of persons or property within the affected area caused by conditions such as fire, food, drought, storm, mudslide, earthquake, civil disorder, foreign invasion, or volcanic eruption.
Victim of a wildfire or natural disaster - means the owner of a primary residence that has been substantially damaged as a result of a wildfire or natural disaster that amounts to more than 50 percent of the improvement value of the primary residence immediately before the wildfire or natural disaster. For purposes of this paragraph, “damage” includes a diminution in the value of the primary residence as a result of restricted access caused by the wildfire or natural disaster.