Prop 19 takes propositions 60 and 90 to the next level! Property taxes are one of California's biggest hurdles when keeping home owners in state. As prices keep rising, the concept of moving for some is less exciting and more stress inducing! Prop 19, simply put, is giving homeowners more options and possibly giving potential California home buyers some much needed inventory.
Check out the video below or read the quick explanation below the video!
What is Prop 19?
Prop 19 gives three specific groups of home owners the permission to take their current property tax rate with them to a new residence anywhere in the state of California.
What three groups?
home owners over 55
victims of a wildfire
How does it work?
Those homeowners can purchase a home of equal or lesser VALUE and keep their current tax rate OR purchase a home valued more than their current home and pay the tax rate of the difference between their current value and the new value combined.
Stanley owns a home he bought for $200,000 a while back. It is now valued at $1,000,000. He can purchase a new home anywhere in CA that is $1,000,000 or LESS and keep his current property tax rate. (In the very unlikely chance that he purchases a home less than $200,000, his new tax rate will be based on the lower amount.)
Paulina also has a home she bought for $200,000 but it's now worth $1,000,000 and she found a home she prefers that is $1,200,000. She can take the original tax base from her $200,000 purchase plus the difference between the value of her home ($1,000,000) and the home she is purchasing ($1,200,000), which is $200,000 and ADD that to her former purchase price to create her new property tax base of $400,000.
This goes into effect on April 1st, 2021. Be sure to reach out with any questions, we'd love to help! TeamKolker@Compass.com