Proposition 19 Update
By Mary Korkodian, Trust & Real Estate Attorney
On February 16, 2021, Proposition 19 went into effect, which limited the property tax reassessment exclusion to the current assessed value plus $1,000,000. Moreover, under Proposition 19, in order for the property to qualify for the reassessment exclusion, the property must be the principal residence of the transferor (generally, the parent) and the transferee (generally the child) must claim the property as his/her principal residence within one (1) year from the date of the transfer (generally, by filing a Homeowner’s Exemption Form).
Effective February 16, 2023, the $1,000,000 was increased due to inflation to $1,022,600 for all transfers occurring between February 16, 2023 – February 15, 2025.
As a result, for transfers that occur February 16, 2023 through February 15, 2025, the property tax reassessment exclusion is capped at the current assessed value plus $1,022,600.
For additional information regarding the adjustment of the $1M amount, click here: Intergenerational Transfer Exclusion, Adjustment of the $1 Million Amount (ca.gov).
Please Note: This document does not constitute legal advice. Please consult an attorney for legal advice on what to do in a particular situation.