As you know, the Howard Jarvis Taxpayers Association opposed Proposition 19, “The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act of 2020,” because it took away the right for parents and grandparents to pass family homes and other property to the next generation without an increase in property taxes. HJTA is currently working on a plan of action that would restore these important and long-standing constitutional protections.
While we hope to reverse this damaging outcome from Proposition 19 as soon as possible, in the meantime, the measure is law in California and we want to make sure you’re aware of important deadlines.
Proposition 19 has two main elements. The expansion of property tax portability, which is generally beneficial to homeowners, takes effect on April 1, 2021.
The troubling element of Prop. 19, the termination of the parent-child or grandparent-grandchild exclusion from reassessment upon transfer of property, takes effect on February 16, 2021. Property transferred on or after that date will be reassessed to market value as of the date of transfer, unless it’s the principal residence of both the transferor and transferee.
If you are considering the transfer of property to a family member before Prop. 19 becomes effective, you have only until February 16 to complete the transaction. Please be aware that there may be other tax consequences, such as capital gains tax or gift tax, triggered by a property transfer. HJTA cannot give individual legal or financial advice, so we encourage you to speak with an attorney, accountant or estate-planning professional before transferring property in California.
The State Board of Equalization, which oversees property tax administration, has information about Proposition 19 on its website here: https://www.boe.ca.gov/prop19/. For assistance or questions, please contact the Property Tax Department by phone at 1-916-274-3350 or contact them at PTWebRequests@boe.ca.gov by email.
Many people have asked us how they can help HJTA fight to reverse the damaging changes in Proposition 19. We encourage you to donate to the Howard Jarvis Taxpayers Association, which can fund research and other efforts toward proposed legislation to accomplish this goal. You can donate online at this link: https://donations.hjta.org/Zdon2HJTA/ZZ_0_HJTA_donations_form.php?event=0027-0693
Or by sending a check to:
Jon Coupal is the President of the Howard Jarvis Taxpayers Association (HJTA). HJTA, with offices in both Los Angeles and Sacramento, is the largest taxpayers association in California with a membership of over 200,000. Founded by the late Howard Jarvis, the author of Proposition 13, HJTA’s name is synonymous with tax relief and the uncompromising defense of the California homeowner.