The second part of Proposition 19 kicks in on April 1. That means that millions of older homeowners, people with severe disabilities and victims of wildfires or natural disasters can achieve significant property tax savings when moving to a new home.
Many of these Californians may not even realize they are eligible for the benefits of Proposition 19, but REALTORS® can help educate them.
Your clients may be able to buy or sell and obtain the tax savings under Prop 19 as long as the corresponding sale takes place on or after April 1. Any such homeowner must be advised to speak with their own legal or tax counselor on their eligibility for property tax savings. See who’s eligible below.
C.A.R.’s dedicated website offers resources on Prop 19, including materials on eligibility, and marketing materials for you. C.A.R. President Dave Walsh had this to say:
“This REALTOR®-driven effort first began nearly a decade ago. Our members identified the growing need to remove unfair location and price restrictions in the state’s property tax base transfer rules.
They also recognized shifting demographic trends showing that the population of older Californians would double from 2010 to 2030 and continue to grow over the next few decades.”
“As a result,” Walsh added, “C.A.R. embarked on this successful — and at times challenging — journey that culminated with the passage of Proposition 19 last November.”
C.A.R. has developed a Prop 19 REALTOR® Member Toolkit, a suite of resources to help you spread the word to your clients about the new tax portability rules. These resources are available at prop19.car.org and include FAQs, Fact Sheets, client presentation, marketing materials and more. Check this site frequently as new materials are being added continuously.
The new law allows homeowners in the above mentioned groups to transfer the taxable value of their primary residence to:
A replacement primary residence
Anywhere in the state
Regardless of the value of the replacement primary residence (with adjustments if “greater” in value)
Within two years of the sale
Up to three times (but without limitation for those whose houses were destroyed by fire)