Here are the main points on Prop. 19 that every California homeowner should know.
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Our state is abuzz with talk of the newly passed Proposition 19 changes, but what do you really need to know about this property tax law? One of the most significant changes brought on by Proposition 19 is that it allows you to transfer your property tax value to anywhere else in the state of California. Previously, the law only allowed for transfers to properties in those specific counties that had chosen to participate in Prop. 19. Now, if you want to transfer the tax value of your current property in Los Angeles or Ventura County to your new home in Palm Springs, you’re able to do so. In fact, you’re able to transfer the tax value on your primary residence up to three separate times—a huge increase from the previous one-time cap.
Here’s another benefit: The ability to transfer your tax value regardless of the purchase price of your new home. Previously, if you had sold your home for $1 million, you would have had to buy your next home for $1 million or below to carry over your tax value. Now, Prop. 19 extends to those who are upgrading on the market, though the taxes will be prorated. In other words, if you sell your home for $1 million and buy your next one for $1.2 million, your tax value for that first $1 million will carry over, and you’ll only pay at the new tax rate for that $200,000 difference.
Prop. 19 gives you the ability to transfer your tax value regardless of the purchase price of your new home.
When all these changes are taken into consideration, it’s clear that many Californians now have a unique opportunity to make an affordable move. Hopefully, this overview answered any Prop. 19-related questions you may have had. If not, please feel free to reach out to The Buss Lampert Group; we’re here to be your real estate resource, and we’d love to hear from you. You know who to call for assistance with any of your 2021 buying or selling needs!