Proposition 19
On February 19, 2021, Proposition 19 came into effect. Although part of the proposition protects seniors, victims of wildfires, and disabled persons from paying increased property taxes after moving to a new property, the proposition essentially gets rid of the protections provided by Propositions 58 and 193. One of the unintended consequences was that transfers of property between parent and child and grandparent and grandchild would be reassessed for property tax purposes if the property was not the primary residence of both the transferor and transferee.
Consequently, businesses, investment properties, and homes that the person does not plan to live in will be subject to property tax reassessment upon transfer. This may severely affect the person’s ability to keep the transferred property, as the property taxes may be too high.
Assembly Constitutional Amendment 9
Amendment 9 seeks to reinstate Propositions 58 and 193. Any property transferred from a parent/grandparent and their child/grandchild would not be subject to property tax reassessment. This allows more people to keep their family businesses and investment properties. People will be able to hold onto their family businesses, investment properties, and homes they do not live in without facing the ever-increasing property taxes in California.
BPE Law Group
