Prop 19 – Part 1

 

 

 

Dear Monica: Since Proposition 19 passed in November, I have been wondering how it will affect my situation. I am over 55 years of age and have been in my house for many years. If I sell and move within California may I move my property tax base to the new property? Gail S.

 

Dear Gail: There is much to understand about Prop 19 but in your situation you may move your property tax basis to any new residence in California. If you buy an equal or lesser valued property, you move the entire tax basis to the new property. If you move to a more expensive property you may take your present property tax to the portion that is equal to the property you sold, and be taxed at current rates only on the additional value of the new property. You may do this up to three times. There is more to explain about the new tax system which will be the subject of future posts.