search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aSterling Bay, JPMorgan at odds with Wells Fargo on $230M Fulton Market debtSterling Bay, JPMorgan at odds with Wells Fargo on $230M Fulton Market debtOffice upgrades, concessions to lure tenants add “killer” cost: Steven RothOffice upgrades, concessions to lure tenants add “killer” cost: Steven RothHousing deal critics spin themselves sillyHousing deal critics spin themselves silly
Popular
Los Angeles

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

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.

Sign Up for the undefined Newsletter

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

Tags
California Property Taxes