- 100% if replacement purchased/newly constructed prior to sale
- 105% if replacement purchased/newly constructed in first year after sale
- 110% if replacement purchased/newly constructed in second year after sale
- Any value
- No adjustment to transferred base year value if the replacement property is of equal or lesser value than the original property's market value. “Equal or lesser value” means:
- 100% if replacement purchased/newly constructed prior to sale
- 105% if replacement purchased/newly constructed in first year after sale
- 110% if replacement purchased/newly constructed in second year after sale
- One time
- Exception: After using once for age, second time for subsequent disability
- Three times
- Revenue & Taxation Code section 69.5 (implements Propositions 60/90/110)
- Revenue and Taxation Code section 69.6 (implements Proposition 19)
- Replaced by Proposition 19 (Revenue and Taxation Code section 69.6)
- Effective April 1, 2021
BASE YEAR VALUE TRANSFER – INTRACOUNTY DISASTER RELIEF
- Any type of property
- Principal residence
- Purchase or newly construct property within 5 years of disaster
- Purchase or newly construct residence within 2 years of sale
- Within same county
- Anywhere in California
- Any value
- Amount above 120% is added to transferred value
- Any value
- No adjustment to transferred base year value if the replacement property is of equal or lesser value than the original property's market value. “Equal or lesser value” means:
- 100% if replacement purchased/newly constructed prior to sale
- 105% if replacement purchased/newly constructed in first year after sale
- 110% if replacement purchased/newly constructed in second year after sale
- Disaster for which the Governor proclaims a state of emergency
- Wildfire, as defined, or natural disaster as declared by the Governor
- Revenue & Taxation Code section 69 (implements Proposition 50)
- Revenue and Taxation Code section 69.6 (implements Proposition 19)
- Effective July 1, 1985
- Effective April 1, 2021
BASE YEAR VALUE TRANSFER – INTERCOUNTY DISASTER RELIEF
- Principal residence
- Principal residence
- Purchase or newly construct principal residence within 3 years of disaster
- Purchase or newly construct principal residence within 2 years of sale
- County with intercounty ordinance (14 counties)
- Anywhere in California
- Equal or lesser value
- 105% if purchased/newly constructed in first year after disaster
- 110% if purchased/newly constructed in second year after disaster
- 115% if purchased/newly constructed in third year after disaster
- Any value
- No adjustment to transferred base year value if the replacement property is of equal or lesser value than the original property's market value. “Equal or lesser value” means:
- 100% if replacement purchased/ newly constructed prior to sale
- 105% if replacement purchased/ newly constructed in first year after sale
- 110% if replacement purchased/ newly constructed in second year after sale
- Disaster for which the Governor proclaims a state of emergency
- Wildfire, as defined, or natural disaster as declared by the Governor
- Revenue & Taxation Code section 69.3 (implements Proposition 171)
- Revenue and Taxation Code section 69.6 (implements Proposition 19)
- Effective October 20, 1991
- Effective April 1, 2021
Note: The information presented is intended to provide general and summary information about Proposition 19. It is not intended to be a legal interpretation or official guidance or relied upon for any purpose, but is instead a presentation of summary information. If there is a conflict between the information presented and the text of the proposition or its implementation, the text of the proposition or legal interpretation will prevail. It is highly encouraged that you consult an attorney for advice specific to your situation.
Refer to the guidance issued below in the form of Letters to Assessors and Chief Counsel Memos regarding Proposition 19.
Letters to Assessors
Proposition 19 General Information
- Letter to Assessors No. 2020/061 — Proposition 19
- Letter to Assessors No. 2021/007 — Proposition 19 Forms
- Letter to Assessors No. 2022/025 — Revised Proposition 19 Forms
- Letter to Assessors No. 2022/051 — Taxpayers' Rights Advocate Office Updated Information Sheets on Property Tax Savings Reflecting the Passage of Proposition 19 — Intergenerational Transfer Exclusions and Base Year Value Transfers for Persons Age 55 and Older or Disabled Persons
- Letter to Assessors No. 2023/046 — Change In Ownership Exclusions: Proposition 19 Technical Cleanup
Intergenerational Transfer Exclusion
- Letter to Assessors No. 2021/008 — Proposition 19 Intergenerational Transfer Exclusion Guidance Questions and Answers
- Letter to Assessors No. 2022/012 — Implementation of Proposition 19: Intergenerational Transfer Exclusion
- Letter to Assessors No. 2023/012 — Intergenerational Transfer Exclusion, Adjustment of the $1 Million Amount
Base Year Value Transfer
- Letter to Assessors No. 2021/019 — Proposition 19 Base Year Value Transfer Guidance Questions and Answers
- Letter to Assessors No. 2021/026 — Base Year Value Transfers for Governor-Proclaimed Disasters
- Letter to Assessors No. 2022/009 — Implementation of Proposition 19: Base Year Value Transfers
Rulemaking
- Letter to Assessors No. 2021/010 — Proposed Property Tax Rule 462.520
- Letter to Assessors No. 2021/012 — Proposed Property Tax Rule 462.540
- Letter to Assessors No. 2021/022 — Notice of Proposed Regulatory Action: The State Board of Equalization Proposes to Adopt California Code of Regulations, Title 18, Section 462.520, Exclusion from Change in Ownership — Intergenerational Transfers
- Letter to Assessors No. 2021/027 — Notice of Proposed Regulatory Action: The State Board of Equalization Proposes to Adopt California Code of Regulations, Title 18, Section 462.540, Change in Ownership — Base Year Value Transfers
- Letter to Assessors No. 2021/028 — Notice of Modifications to Text of Proposed Rule that the State Board of Equalization Proposes to Adopt as California Code of Regulations, Title 18, Section 462.520, Exclusion from Change in Ownership — Intergenerational Transfers
- Letter to Assessors No. 2021/049 — Notice of Modifications to Text of Proposed Rule and Addition of Documents and Information to the Rulemaking File for the Proposed Adoption of California Code of Regulations, Title 18, Section 462.540, Change in Ownership — Base Year Value Transfers
- Letter to Assessors No. 2021/054 — California Code of Regulations, Title 18, Public Revenues, Property Tax Rule 462.520
- Letter to Assessors No. 2022/005 — California Code of Regulations, Title 18, Public Revenues, Property Tax Rule 462.540
- Letter to Assessors No. 2022/014 — Interested Parties Process: Amendments to Property Tax Rules 462.520 and 462.540 through the Emergency Rulemaking Process
- Letter to Assessors No. 2022/026 — Notice of Adoption of Emergency Amendments to and Publication of Notice of Proposed Emergency Action for California Code of Regulations, Title 18, Section 462.520, Exclusion from Change in Ownership — Intergenerational Transfers
- Letter to Assessors No. 2022/027 — Notice of Adoption of Emergency Amendments to and Publication of Notice of Proposed Emergency Action for California Code of Regulations, Title 18, Section 462.540, Change in Ownership — Base Year Value Transfers
- Letter to Assessors No. 2022/035 — California Code of Regulations, Title 18, Public Revenues, Emergency Action, Property Tax Rules 462.520 and 462.540
- Letter to Assessors No. 2022/037 — Property Tax Rules 462.520 and 462.540
- Letter to Assessors No. 2022/045 — Notice of Publication of Notice of Proposed Regulatory Action for California Code of Regulations, Title 18, Section 462.520, Exclusion from Change in Ownership — Intergenerational Transfers
- Letter to Assessors No. 2022/046 — Notice of Publication of Notice of Proposed Regulatory Action for California Code of Regulations, Title 18, Section 462.540, Exclusion from Change in Ownership — Base Year Value Transfers
- Letter to Assessors No. 2023/006 — 15-Day Notice of Public Availability of Underline and Strikeout Text for the State Board of Equalization Proposal to Amend California Code of Regulations, Title 18, Section 462.540, Change in Ownership — Base Year Value Transfers
- Letter to Assessors No. 2023/007 — 15-Day Notice of Public Availability of Underline and Strikeout Text for the State Board of Equalization Proposal to Amend California Code of Regulations, Title 18, Section 462.520, Exclusion from Change in Ownership — Intergenerational Transfers
- Letter to Assessors No. 2023/009 — California Code of Regulations, Title 18, Property Tax Rules 462.520 and 462.540 Emergency Action
- Letter to Assessors No. 2023/018 — California Code of Regulations, Title 18, Public Revenues, Property Tax Rules 462.520 and 462.540
Chief Counsel Memos
Notes
- This memorandum, including questions and answers, represent the initial thoughts of the Legal Department and may be subject to change.
Rulemaking
Below you will find information regarding the rulemaking process related to Proposition 19.
- Proposed Adoption of Property Tax Rule 462.520, Exclusion from Change in Ownership – Intergenerational Transfers
- Proposed Adoption of Property Tax Rule 462.540, Exclusion from Change in Ownership – Base Year Value Transfers
Proposition 19's provisions became operative on February 16, 2021 (for intergenerational transfer exclusions) and April 1, 2021 (for base year value transfers). Effective September 30, 2021, Senate Bill 539 (Stats. 2021, ch. 427) added sections 63.2 and 69.6 to the Revenue and Taxation Code to implement the provisions of Proposition 19. As more information becomes available and more questions arise, these FAQs will be updated with additional questions and answers. Please check back often for updates.
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What is the effective date of Proposition 19?
Proposition 19, which was passed by the California voters on November 3, 2020, became effective on December 16, 2020, the 5th day after the Secretary of State certified the election. However, the changes to the parent-child and grandparent-grandchild exclusion became operative on February 16, 2021, and the base year value transfer provisions became operative on April 1, 2021. (But, see answers to Base Year Value Transfer FAQ #4 and Parent-Child and Grandparent-Grandchild Transfer FAQ #1 and #8.)
Because the operative dates are part of the California Constitution, the State Board of Equalization (BOE) does not have the authority to extend or change Proposition 19's operative dates.
Base Year Value Transfers
- I recently sold my home and am currently in escrow to purchase a replacement home. How do I transfer the base year value to my new home? Can this be done via escrow?
In order to receive the Proposition 19 base year value transfer, a claim form must be filed after both transactions have been completed and you are living in the replacement home. This is not done through escrow.
Proposition 19 base year value transfer claim forms are available from and filed with the Assessor of the county where the replacement home is located. The contact information for all 58 County Assessors, is available on the BOE's website.
As long as one transaction occurs on or after April 1, 2021, and the original home is sold within two years of the purchase of the replacement home, the base year value of the original home can be transferred to the replacement home under Proposition 19. A base year value transfer occurs as of the later of either (1) the date of sale of the original home, or (2) the purchase or completion of new construction of the replacement home. If you purchase the replacement home prior to selling your original home, you will be responsible for property taxes based on the full fair market value of the replacement home for the period between the date of purchase and date of sale. There will be no refund for this period.
Since the replacement home was purchased (1) on or after April 1, 2021, and (2) within two years of the sale of the original home (in this case, on or before June 1, 2022), the timing requirements for the base year value transfer have been met. As long as all other requirements have been met, you should qualify for a base year value transfer.
Under Proposition 19, three transfers will be allowed for homeowners who are over age 55 or physically and permanently disabled, regardless of whether a property owner previously transferred a base year value under Propositions 60/90 and Proposition 110.
- 100% or less of the full cash value of the original home if a replacement home is purchased or newly constructed before the sale of the original home, or
- 105% or less of the full cash value of the original home if a replacement home is purchased or newly constructed within the first year after the sale of the original home, or
- 110% or less of the full cash value of the original home if a replacement home is purchased or newly constructed within the second year after the sale of the original home.
However, if the full cash value of the replacement home is greater than the adjusted full cash value of the original home, the base year value of the original home may still be transferred to the replacement home, but with any excess value above the adjusted full cash value of the original home added on. Thus, the new taxable value of the replacement home would be the sum of the adjusted base year value of the original home plus the difference between the full cash values of the original home, as described above, and the replacement home.
For example, an original home was sold and had a full cash value of $400,000 and a factored base year value of $100,000 at the time of sale. If a replacement home is purchased in the first year after the sale for a full cash value of $600,000, then 105 percent of the full cash value of the original home is compared to the full cash value of the replacement home. The original home's adjusted full cash value equals $400,000 X 105% = $420,000. The difference between the full cash value of the replacement dwelling ($600,000) and the adjusted full cash value of the original property ($420,000) is added to the factored base year value ($600,000 - $420,000 = $180,000 + $100,000 = $280,000). Thus, the replacement home will have a taxable value of $280,000.
One of the requirements of the Proposition 19 base year value transfer is that the original home must be eligible for the homeowners' or disabled veterans' exemption either at the time of sale or within two years of the purchase of the replacement home. “Eligible for” means that the homeowner must own and occupy the home as a principal residence. Thus, there is no set time period for which the homeowner must occupy the original home prior to its sale; all that is required is that the original home be the primary residence at the time of sale and, thus, eligible for either the homeowners' or disabled veterans' exemption.
Proposition 19 is effective on and after April 1, 2021, and requires that a replacement home be purchased or newly constructed within two years of the sale of the original home in its damaged condition. The base year value transfer under Proposition 19 is not dependent on the date of the disaster.
As long as you were the owner of the original home and it was your principal residence either at the time of sale or within two years of the purchase of the replacement home, you will be the person eligible (the claimant) to transfer its base year value. The law does not require the claimant to be the sole owner of the replacement dwelling. Thus, as long as all co owners of the replacement dwelling purchase the property together and you are one of the purchasers, the fact that your child is also on title to the replacement home would not affect your eligibility for the Proposition 19 base year value transfer. Even though you may own only a partial interest in the replacement home, you will be able to transfer your base year value to the entire replacement home.
An inherited property may be considered an original home for purposes of the Proposition 19 base year value transfer, as long as you own and occupy the home as a principal residence either at the time of sale or within two years of the purchase or new construction of your replacement home. As long as all other requirements are met, you should be able to transfer the base year value of your inherited family home to a replacement home.
Under Proposition 19, a homeowner may qualify for the base year value transfer under any one of the three categories listed; the homeowner does not need to meet all three categories in order to qualify. However, the homeowner must meet at least one of the qualifications on the date that the original property is sold.
Parent-Child and Grandparent-Grandchild Transfers
- Is Proposition 19 retroactive and would it cause property transfers that have already received the benefit of Proposition 58 (Parent-Child Exclusion) to be reassessed?
Proposition 19 is not retroactive and transfers that have already occurred under the benefit of Proposition 58 will not now be subject to reassessment. Under the provisions of Proposition 19, Proposition 58 applies to transfers that occur on or before February 15, 2021, and Proposition 19 applies to transfers that occur on or after February 16, 2021. However, because February 15, 2021 is a state holiday and statutes extend for one day the deadline to perform any act that is due on a state holiday, transfers evidenced by a recorded deed and transfers by an unrecorded deed may be accomplished by February 16, 2021 and still be eligible for the Proposition 58 exclusion. However, since the change in ownership of inherited property does not involve an act that is required to be performed or the filing of any instrument (i.e., by law, the transfer is deemed to have occurred on the date of the decedent's death), property must be inherited by February 15, 2021 for subdivision (h) of Section 2.1 to apply.
Both children do not need to reside in the residence in order to be eligible to receive the parent-child transfer exclusion under the provisions of Proposition 19. As long as at least one of the children who were gifted the family home resides in the residence and applies for either the homeowners' or disabled veterans' exemption within one year of the transfer, and all other requirements have been met, then the parent-child (intergenerational) transfer exclusion should be allowed.
At least one eligible transferee must continually live in the property as their family home for the property to maintain the exclusion. Thus, once the property is no longer your principal residence, it will receive a new taxable value as of the lien date following the date you no longer occupy the property as your principal residence. The new taxable value will be the fair market value of the home on the date you inherited it, adjusted each year after for the inflation factor, and enrolled as of the lien date following the date you moved out.
No, Proposition 19 limits the parent-child transfer exclusion to a transfer of (1) a family home that is the principal residence of the transferor and becomes the principal residence of the transferee, or (2) a family farm. Thus, the transfer of a rental home between parents and children would not qualify for the exclusion.
As long as the date of transfer or change in ownership of real property between parent and child occurs on or before February 15, 2021, the transfer will qualify for the exclusion under Proposition 58/193. Therefore, a claim will be considered timely if it is filed with the County Assessor (1) within three years of the date of transfer or before a transfer to a third party, whichever is earlier, or (2) within six months of the date of notice of supplemental or escape assessment if issued after the expiration of the first deadline. Thus, to qualify for the Propositions 58/193 exclusion, the claim does not need to be filed by February 16, 2021.
The value limit under Proposition 19 is the sum of the factored base year value plus $1 million. If the market value exceeds this limit, the amount exceeding the value limit will be added to the factored base year value. Thus, as long as all other qualifications have been met, you are still entitled to the exclusion, with an adjusted taxable value to account for the excess over the value limit. For example, a family home has a factored base year value (FBYV) of $300,000 and a fair market value of $1,500,000. The excluded amount under Proposition 19 is $1,300,000 ($300,000 + $1,000,000 = $1,300,000). The difference of $200,000 ($1,500,000 - $1,300,000 = $200,000) is added to the property's FBYV. Thus, the adjusted base year value is $500,000 (FBYV $300,000 + difference of $200,000).
The date of death is the date of change in ownership. Thus, the law in effect as of the date of death will apply. Proposition 19 is clear that Proposition 58 applies to dates of death that occur on or before February 15, 2021, and Proposition 19 applies to dates of death that occur on or after February 16, 2021.
As long as the date of transfer is on or before February 15, 2021, the transfer will qualify for the Proposition 58/193 exclusion, as long as all other qualifications are met. However, because February 15, 2021 was a state holiday and statutes extend for one day the deadline to perform any act that is due on a state holiday, transfers evidenced by recorded deed and transfers by unrecorded deed may be accomplished by February 16, 2021 and still be eligible for the Proposition 58 exclusion. Property Tax Rule 462.260 makes clear that the recordation date of a deed is rebuttably presumed to be the transfer date. This means that if evidence is shown that the transfer occurred prior to the recordation date, the Assessor should accept that earlier date. Such evidence could be, for example, the date of a notarized document of transfer, such as a deed.
The administration of a trust is governed by the trust instrument itself. For properties held in trusts, Revenue and Taxation Code section 61(h) provides that a change in ownership occurs when any interests in real property vest in persons other than the trustor or the trustor's spouse or registered domestic partner when a revocable trust becomes irrevocable (also see Property Tax Rule 462.260). This typically occurs upon the death of the trustor. Thus, the date of death is considered to be the date of change in ownership. Proposition 19 is clear that Proposition 58 applies to transfers that occur on or before February 15, 2021, and Proposition 19 applies to transfers that occur on or after February 16, 2021.
To apply for the homeowners' exemption or disabled veterans' exemption, a claim must be filed with the County Assessor. Form BOE-266, Claim for Homeowners' Property Tax Exemption, is the claim form to apply for the homeowners' exemption, and form BOE‑261-G, Claim for Disabled Veterans' Property Tax Exemption, is the claim form for the disabled veterans' exemption. Both forms can be obtained from and submitted to the local County Assessor's office where the property is located.
If you have further questions, you may call the State Board of Equalization's Property Tax Department, County-Assessed Properties Division at 1-916-274-3350 or contact us by e-mail.
For more questions and answers on parent-child and grandparent-grandchild (intergenerational) transfers, please refer to Letter To Assessors No. 2022/012, Implementation of Proposition 19 Intergenerational Transfer Exclusion.
Note: If there is a conflict between the information presented and the text of the proposition or its implementation, the text of the proposition or its implementation will prevail. It is highly encouraged that you consult an attorney for advice specific to your situation.
To assist taxpayers, below you will find information on legislation related to Proposition 19.
