Prop 19 passes, providing tax relief for older homeowners who move

Statewide measure allows residents to keep part of their previous property’s lower tax assessment

Los Angeles /
Nov.November 12, 2020 09:11 AM
California voters have approved Proposition 19
California voters have approved Proposition 19

Proposition 19, a statewide ballot measure that could provide a substantial tax break to older homeowners who move, has been approved.

More than a week after Election Day, the measure passed with 51 percent of the vote — drawing 350,000 more “yes” votes than “no” votes — the Los Angeles Times reported, citing the Associated Press’ projections.

It allows residents over 55 years old to partially carry over their property tax assessment from their old home to a newly-purchased property. The older assessments are typically lower given the rules guiding 1978’s Prop 13, in which residential and commercial properties are only reassessed at the time of a sale.

The passage of Prop 19 gives the real estate industry wins on all three Nov. 3 ballot measures related to the industry. Voters overwhelmingly rejected Prop 21, a measure that would have allowed for expanded rent control; voters also opposed Prop 15, which would have reassessed commercial properties more frequently.

The California Association of Realtors was Prop 15’s biggest backer, arguing it will encourage empty-nesters and other older homeowners to sell, and bring more moderately-priced properties to the market. More properties on the market would likely benefit agents.
The measure also bars people who inherit a home from keeping the low property tax assessment if they intend to use the property as a second home or for rental income. CAR argued this will stimulate the market, and raise tax dollars for the state. [LAT] ­ — Dennis Lynch


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