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


Related Articles

arrow_forward_ios
ELK Development founder Evan Kasper and renderings of 728 South Manhattan Place (ELK, OFFICEUNTITLED)
ELK Development plans 2nd Koreatown apartment complex
ELK Development plans 2nd Koreatown apartment complex
Bell Partners CEO Jon Bell and Bell Warner Center (Bell Partners, Bell Warner Center)
Bell Partners buys 394-unit complex in Canoga Park
Bell Partners buys 394-unit complex in Canoga Park
340 S. La Fayette Park Place (Rent)
MC Investment is buyer behind 100-unit Rampart Village complex
MC Investment is buyer behind 100-unit Rampart Village complex
Treehouse co-founders Joe Green and Prophet Walker and with 4421 S. Crenshaw Boulevard (LinkedIn via Walker, Warcus & Millichap, WikiMedia / Tony Maesto)
Co-living startup Treehouse plans second complex in Los Angeles
Co-living startup Treehouse plans second complex in Los Angeles
Fairfield Residential CEO Greg Pinkalla and Madison at Town Center (Fairfield, Marcus and Millichap)
Apartment giant Fairfield Residential pays $62M for Valencia complex
Apartment giant Fairfield Residential pays $62M for Valencia complex
Michael Shvo and 9200 Wilshire renderings (Shvo, Getty)
Shvo signs Mandarin Oriental to Beverly Hills residential project
Shvo signs Mandarin Oriental to Beverly Hills residential project
Brandywine Homes plans 84-unit townhome complex in North Long Beach
Brandywine Homes plans 84-unit townhome complex in North Long Beach
Brandywine Homes plans 84-unit townhome complex in North Long Beach
Western National Group CEO Michael Hayde and ASB Real Estate Investments CEO Robert Bellinger with the apartments (ASB, Western National)
ASB, Western National buy Inland Empire apartment complex for $227M
ASB, Western National buy Inland Empire apartment complex for $227M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...