|
|
|
CA Prop 19 - California voters recently approved Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act. Proposition 19 went into effect on April 1, 2021. There are several facets to this new act, including helping wildfire victims, etc. The main benefit is that it allows millions of California senior homeowners (55 years of age or older) to keep their lower property tax base after they move into a new home. This proposition super cedes Prop 60 and 90 tax transfer laws in this regard. It also improves on them in several ways. • While Proposition 60 allowed property tax transfers within a County, homeowners could use Prop 60 only once in their lifetime. Plus, the homeowner had to purchase a replacement property of equal or lesser value. • Proposition 90 allowed property tax transfers from one County to another, but only if the Counties cooperated with the measure - many did not. And like Prop 60, Prop 90 could only be used once. Plus, the replacement property had to be of equal of lesser value. The new
Proposition 19 benefits include: How are these new features beneficial to you? You no longer have to worry about buying a replacement property at equal or lesser value. For many of my clients, the concern with Prop 60 was making sure that they sold their home for more than the value of the replacement property. This was very limiting. Many clients would have preferred to upgrade rather than being forced to downsize. In many cases, they were forced to settle for a less expensive replacement home if they wished to keep their lower property taxes. Prop 19 solves this problem by allowing you to purchase a home for a greater value than the one you sold. You merely have to pay tax difference if you go up in value. As an example: You sold a home for $700,000 with a property tax basis of $300,000. You then bought a replacement home for $800,000. With Prop 19, you can transfer you $300,000 property tax basis and you would only pay additional property tax on the $100,000 added value. You are no longer limited to which California County you move to. Another concern for many clients was that Proposition 90 was not allowed in many Counties. If you wished to keep your old property tax base, you had to be sure that the County you were moving to, allowed the tax transfer. With Prop 19, this concern was eliminated. Homeowners can now feel free to move anywhere in the State and keep their low property tax. You may utilize a Proposition 19 tax transfer up to 3 times. For many homeowners, this gives you the option of keeping your low tax base, even when you move more than once. As an example: a client might wish to move to a smaller home after they become "empty nesters". But years later, they may wish to move to a one level home or a home in a retirement community. With Prop 19, they can keep the low property tax basis of their first home, even after moving into their third replacement home.
With so many Prop 19 advantages to keeping your existing low property tax rate, now may be the time for you to consider selling your home and buying your dream replacement home! Contact me now to discuss the current market value of your home and how I will help you sell it for the most money! I will be happy to provide you with a complimentary CMA (Comparative Market Analysis). This will compare your home to several recent sales in your neighborhood and give you a great idea of what your home is worth. As a consistent top producer at Realty One Group West, you will be in good hands working with me to sell your home. Also, to find that replacement home that you've been dreaming of!
|
