Proposition 19’s Property Tax Transfer: A Godsend for Southern California Seniors

Proposition 19 has been a game-changer for many homeowners in California, including Bruce and Teresa Steele of Rancho Palos Verdes. The couple shared their heartfelt story of how Prop. 19 allowed them to make a much-needed move without facing a property tax obstacle.

Before Prop. 19 was enacted in 2021, homeowners over 55 only had one opportunity to transfer their Prop. 13 tax base to a new home, and it had to be of equal or lesser value. However, with the new law, homeowners can now transfer their tax base up to three times anywhere in California, regardless of the value of the new home.

For the Steeles, this meant they could sell their Torrance townhome and move to Rancho Palos Verdes without worrying about a significant increase in property taxes. They were able to purchase a new home for $1.9 million, thanks to the benefits of Prop. 19.

Since the law was enacted, thousands of homeowners in Southern California have taken advantage of the tax-transfer benefit. In Los Angeles County alone, over 2,400 homeowners have been granted a tax transfer, with more requests coming in each month.

The benefits of Prop. 19 extend beyond just tax transfers. Homebuyers must file for the tax exemption in the first year of a new purchase, and there is no price cap on the new home compared to the former home’s value. This flexibility has allowed many homeowners to make the move they desire without financial constraints.

Overall, Prop. 19 has been a lifeline for many retirees and homeowners in California, providing them with the freedom to move without the fear of increased property taxes. The Steeles’ story is just one example of how this law has made a significant impact on the lives of Californians.