Riverside, County – Changes to Prop. 13, California's premier property tax cap that limits the increase in taxable assets, will benefit most homeowners over the age of 55, disabled, or natural disaster. Transfers between family members are also affected.
On November 3, 2020, California voters voted in favor Prop. 19, the house protection law for the elderly, the severely disabled, families and victims of forest fires or natural disasters. Prop. 19 is a constitutional amendment to Prop. 13 that expands the portability of a property owner's tax base and limits benefits for people who inherit property from their parents or grandparents.
"Prop. 19 is introducing some very big changes to California's property tax system, and we're working hard to get those changes into place quickly," said Peter Aldana, Riverside County's assessor-county clerk recorder. "There are still many questions about that Language of this amendment, and my colleagues and I expect this to be resolved in the coming months by the Compensation Committee and state legislation. We are currently working to bring the public the best information we have. "
Under current law, children and grandchildren can inherit the wealth tax assessment from their parents or grandparents. This applies to a primary residence of any value and up to $ 1 million in additional ownership. As of February 16, 2021, the individual who inherits primary residence from their parent or grandparent must occupy the property in order to receive their parent's or grandparent's appraised worth and such transfers are subject to restrictions. The exclusion for additional property does not apply.
early Aprilil 1, 2021, homeowners who are 55 years old, disabled, or victims of wildfire or natural disaster can transfer the estimated value of their primary home to a newly purchased or newly constructed replacement across the state up to three times. Applicable law allows only such a transfer and limits it to substitutions within the same county or a participating county.
The typical provisions of Prop. 13, which limit increasing taxable property values, remain unchanged. Property owners who stay in their house and are currently protected by Prop. 13 remain unaffected.
However, changes introduced by Prop. 19 will affect how certain homeowners decide to transfer their Prop. 13 protection either to a new property or by transferring it to a child or grandchild.
Taxpayers can find more information on Prop. 19 on the Riverside County Assessor-County Clerk Recorder website: www.asrclkrec.com.
"Prop. 19 can have an impact on retirement planning and estate planning," said Aldana. "While my staff and I are willing to provide the best possible information to the public, we encourage taxpayers to consult with questions about their specific plans To seek advice from legal and financial experts. "