Proposition 19 in California is a game-changer for homeowners. The newer law, which went into effect on February 16, 2021, offers several key benefits and opportunities for real estate professionals to help their clients save money and invest in the right property. In this blog, we’ll take a look at the key features of Proposition 19 and how it has positively impacted homeowners.
- Property Tax Savings: Proposition 19 allows homeowners to transfer their property tax base to a new home of equal or lesser value anywhere in California. This means that homeowners can now enjoy lower property taxes on their new home, leading to significant savings over time.
- Revenue Generation: Proposition 19 also provides local governments with new revenue sources, helping to fund essential services such as fire protection, public safety, and schools.
- Boost for Second Home Market: Proposition 19 has created new opportunities for those who own a second home. By removing the limit on the number of times homeowners can transfer their property tax base, they can now more easily move from one home to another, creating a boost for the second home market.
- Enhanced Exemption for Seniors: Proposition 19 has expanded the property tax exemption for seniors (55+) and individuals with disabilities. This exemption has been increased to $1 million and can be applied to any home, regardless of its value.
These new benefits and opportunities provide a great chance to help homeowners make informed decisions when it comes to buying, selling, and investing in property. With Proposition 19, a real estate agent can now offer clients more personalized and effective advice, guiding them towards their ideal home while also helping them to save money on their property taxes.
You may be able to benefit from Proposition 19 if any of the following apply:
- Allows transfers of a family home or family farm between parents and their children
- Allows transfers of a family home or family farm between grandparents and their grandchildren under limited conditions
- Allows homeowners who are age 55 or older, or severely and permanently disabled of any age, to transfer the “taxable value” of their principal residence to a replacement property up to three times anywhere in the state.
- Allows victims of a wildfire or natural disaster to transfer the taxable value of their primary residence to a replacement residence anywhere in the state.
In conclusion, Proposition 19 has been a major win for California homeowners. With its focus on property tax savings, enhanced exemptions for seniors, increased revenue for fire protection and emergency services, and improved access to homeownership, it has provided significant benefits for those who call California home. So if you're a homeowner in California, it's worth exploring how Proposition 19 can help you save money and enhance your overall quality of life.