Proposition 19 – Changes to Property Tax Base for Inherited & Transferred Property

PROPOSITION 19 Refer to the LA County Assessor Website for More Information:
https://assessor.lacounty.gov/prop19

Inheriting Property
Proposition 19 is a Constitutional Amendment that imposes new limits on property tax benefits for inherited family property. Under Proposition 19 (effective February 16, 2021), a child or children may keep the lower property tax base of the parent(s) ONLY if the property is the principal residence of the parent(s) and the child or children make it their principal residence within one year. There is a value limit of current taxable value plus $1,000,000.

Transfer of Property Tax Base
The other component of Proposition 19 (effective April 1, 2021) allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster, to transfer their lower assessed property value of their primary home to a newly purchased or newly constructed replacement principal residence up to three times (or once per disaster). The tax base may be transferred to a property located anywhere in the state of any value (subject to conditions). Amount above 100% is added to the transferred value.

Consult your Tax Professional for Tax Advice.

Posted on February 23, 2021 at 7:54 pm
Michael Galieote | Category: Uncategorized

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