Proposition 19: How to Take Your Low Property Tax Base With You

If you're 55 or older and own a home in Los Angeles, you may be staying put partly because of your property taxes. A low assessed value from years of ownership is valuable, and losing it can make moving feel expensive. Proposition 19 lets eligible homeowners take that tax base with them. Here's how it works.

Who can use Proposition 19?

You qualify if, on the date you sell your original home, you are 55 or older, severely and permanently disabled, or a victim of a wildfire or Governor-declared natural disaster. The home you sell must have been your principal residence and eligible for the homeowners' or disabled veterans' exemption.

Where can I move?

Anywhere in California. Before Prop 19, transfers were limited to the same county or a handful of participating counties. Now you can sell in Santa Monica and buy in San Diego, Sacramento or Palm Springs and still transfer your base.

How long do I have?

You must buy or newly build the replacement home within two years of selling the original one. You can buy first, but the replacement is taxed at full market value until the original sells, and there is no refund for that period.

What if my new home costs more?

You can buy a more expensive home; you just won't transfer your base dollar-for-dollar. The State Board of Equalization compares the replacement price to your original home's market value:

• Up to 100% if you buy before you sell
• Up to 105% if you buy within the first year after selling
• Up to 110% if you buy in the second year

At or under that threshold, your old base year value carries over unchanged. Anything above it is added to your transferred value. The Board's own example: you sell a $400,000 home with a $100,000 base and buy a $600,000 home in year one. The threshold is $420,000, so $180,000 is added, and your new taxable value is $280,000 instead of $600,000.

How many times can I do this?

Three times. Transfers made under the old Propositions 60, 90 or 110 don't count against that limit.

How do I claim it?

File with the assessor in the county where your new home is, after both sales close and you've moved in. It isn't handled through escrow. The deadline is three years from the replacement purchase. The form for homeowners 55+ is BOE-19-B; disabled homeowners use BOE-19-D, and disaster victims use BOE-19-V.

Did Prop 19 change parent-child transfers too?

Yes. Since February 16, 2021, a child can only keep a parent's tax base on a family home if the child makes it their primary residence, and only up to a value cap (the factored base plus $1,044,586 for transfers through February 15, 2027; the State Board of Equalization adjusts that figure every two years). Rentals and other property no longer qualify. If an inherited home is part of your plans, it's worth getting advice early.

Planning a move?

Timing your sale and purchase is where Prop 19 savings are won or lost, especially that 100/105/110% window. If you're thinking about downsizing or relocating within California, I'm happy to run the numbers with you. Call me at (323) 985-3285.

Source: California State Board of Equalization, Proposition 19. This is general information, not tax advice; confirm details with your county assessor or a tax professional.