Proposition 19
On November 3, 2020, California voters passed Proposition 19, the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act. We are currently experiencing high volumes of claims and are processing them in the order of receipt now that implementing legislation was passed and the BOE issued guidance on such implementing legislation.
PERSONS 55+ OR SEVERELY DISABLED
Transfers by citizens age 55 or older or severely disabled.
(Effective for transactions on or after April 1, 2021)
Below is the chart developed by the State Board of Equalization comparing the current law and the effects of Proposition 19, pending its enactment.
| Current Law | Proposition 19 | |
| Type of Property | ► Principal residence | ► Principal residence |
| Timing | ► Purchase or newly construct residence within 2 years of sale | ► Purchase or newly construct residence within 2 years of sale |
| Location of Replacement Home |
► Same county |
► Anywhere in California |
| Value Limit |
► Equal or lesser value ► 105% if replacement purchased/new construction in the first year after sale |
► Any value ► No adjustment to transferred base year value if the replacement property is of equal or lesser value than the original property's market value. "Equal or lesser value" means:
► If the full cash value of replacement property exceeds "equal or lesser value" when compared to the full cash value of the original property, a difference in full cash value is added to the transferred value |
| How many transfers? | ► One time ► Exception: After using once for age, second time for subsequent disability |
► Three times |
| Implementing Statute | ► Revenue & Taxation Code section 69.5 (implements Propositions 60/90/110) | ► Revenue & Taxation Code section 69.6 |
| Important Dates | ► Through March 31, 2021 | ► Effective April 1, 2021 |
PARENT-CHILD & GRANDPARENT-GRANDCHILD
Parent to child and grandparent to grandchildren transfers.
(Effective for transactions on or after February 16, 2021)
Below is the chart developed by the State Board of Equalization comparing the current law and the effects of Proposition 19, pending its enactment.
| Current Law | Proposition 19 | |
| Principal Residence |
► The principal residence of the transferor |
► The principal residence of transferor and transferee ► Value limit of current taxable value plus $1,000,000 (as annually adjusted) ► Family homes and farms |
| Other Real Property | ► Transferor lifetime limit of $1,000,000 of factored base year value | ► Eliminates exclusion for other real property other than the principal residence |
| Grandparent-Grandchild Middle Generation Limit | ► Parent(s) of a grandchild, who qualifies as a child(ren) of a grandparent, must be deceased on the date of transfer |
► No change: parent(s) of a grandchild, who qualifies as a child(ren) of a grandparent, must be deceased on the date of transfer |
| Filing Period |
► File claim within 3 years or before transfer to the third party |
► File for homeowners' exemption within 1 year of transfer |
| Implementing Statute | ► Revenue & Taxation Code section 63.1 (implements Propositions 58/193) | ► To be determined |
| Important Dates | ► Through February 15, 2021 | ► Effective February 16, 2021 |
Please click here to access information on filing for either of the Base Year Transfer information or click here to view Parent-Child & Grandparent-Grandchild Exclusion information.
VICTIMS OF WILDFIRE OR NATURAL DISASTERS
Sale of original property or reconstruction of new property for Victims of Wildfire or Natural Disasters.
(Effective for transactions on or after April 1, 2021)
For tax relief information for victims of a wildfire or a natural disaster, please click here to view the comparison chart of current law and the effects of Proposition 19, pending its enactment.
Notes: The above charts are intended to provide general and summary information about Proposition 19. It is not intended to be a legal interpretation, official guidance, or relied upon for any reason but instead be a presentation of summary information. If there is a conflict between the information above and the text of the proposition or its implementation, the text of the proposition or legal interpretation will prevail. The above is intended as general information only.
As a consequence of Proposition 19, which was passed by the voters in November 2020, these tax relief areas are being updated to conform with the new laws. The extent of the changes is still being determined. As these changes become more clarified by the Legislature, we will place that information on our website as soon as possible.