Proposition 19 allows homeowners who are over 55, disabled, or wildfire/disaster victims to transfer primary residence’s tax base to a replacement residence. It changes the taxation of family-property transfers and establishes a fire protection services fund. Local governments could gain tens of millions of dollars of property tax revenue per year, probably growing over time to a few hundred million dollars per year. Schools could receive similar property tax gains.

A yes vote means all homeowners who are over 55 (or who meet other qualifications) would be eligible for property tax savings when they move. Only inherited properties used as primary homes or farms would be eligible for property tax savings.

A no vote means some homeowners who are 55 (or meet other qualifications) would continue to be eligible for property tax savings when they move. All inherited properties would continue to be eligible for property tax savings.

Background

A similar measure lost by 20% in 2018 but this time the California Realtors Association, its main backer, sought to broaden appeal by tightening rules on passing along lower taxes through inherited properties. It is endorsed by business and labor groups, with no organized opposition.

 

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