Judy Naimo, Home-owner Dilemmas: Eager about shifting, however nervous about property tax will increase? | Residence and Backyard

1. The home they bought could not be worth more than the home they sold;

2. The new home had to be in the same county as the old one, or in one of 10 counties that accepted incoming transfers of assessed value (Alameda, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne, Ventura); and

3. They could only do this once in a lifetime.

Prop 19 has new tax benefits for homeowners that are 55 and over, or are severely disabled, or were victims of wildfire or natural disaster. It allows for:

• Moving anywhere in California: Prop 19 removes location restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home anywhere in California.

• Moving to any home regardless of price: Prop 19 removes price restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home regardless of price (with an adjustment upward to their tax basis on a percentage of only the amount that is of greater value of the replacement property).

• Transferring the low property tax base of your original home to a new home up to THREE times (or more for victims of wildfire or natural hazard)

This means that folks that wanted to downsize are now able to do so without a tax “penalty.”