Prop. 19: Transferring Low Property Taxes in Monterey County

Prop. 19, also known as the "Property Tax Transfers, Exemptions, and Revenue for Wildfire Agencies and Counties Amendment," is a new law that affects property taxes in California. In Monterey County, it has the potential to significantly impact the way that property taxes are transferred between generations. This article will provide you with a comprehensive overview of the pros and cons of Prop. 19 and how it may affect you if you're considering buying or selling a property in Monterey County.

Pros of Prop. 19:

  1. Flexibility in location: One of the key changes brought about by Prop. 19 is the ability for homeowners over the age of 55, severely disabled homeowners, or those affected by wildfire or natural disaster to transfer their primary residence's property tax base to a replacement residence anywhere in California. This is a significant change from the previous law, which only allowed for transfers within the same county.

  2. Cost savings: This change can be a huge benefit for homeowners in Monterey County who are looking to downsize or move to a different area of the state, as it allows them to keep their low property tax base when purchasing a replacement residence. It can also be a great option for homeowners who have been affected by wildfire or natural disaster, as it allows them to move to a new area without having to pay significantly higher property taxes.

Cons of Prop. 19:

  1. Limitations: There are some limitations to this new law. The replacement residence must be of equal or lesser value than the original residence, and the property tax base can only be transferred once every three years. Additionally, certain types of property, such as vacation homes, are not eligible for the transfer.

  2. Complexity: The law is complex and can be difficult to navigate. It's important to consult with a tax advisor or a real estate agent with the proper knowledge of the law to evaluate if this law affects you and if it is a good option for your specific situation.

  3. Impact on the County's revenue: Prop. 19 also allows certain homeowners to transfer their property tax base to a replacement residence of equal or lesser value anywhere in California, which may cause revenue loss for the county and the state.

Overall, Prop. 19 is a new law that can provide a great opportunity for homeowners who are looking to move or downsize, and for those affected by wildfire or natural disaster, with the ability to transfer their property tax base to a replacement residence anywhere in California. However, it's important to understand the limitations and evaluate if this law affects you and if it is a good option for your specific situation. It's always recommendable to consult with a professional to help you navigate the complexity of this new law.

Frequently Asked Questions:

  1. Who is eligible for the property tax transfer under Prop. 19?
  • Homeowners over the age of 55, severely disabled homeowners, or those affected by wildfire or natural disaster are eligible for the property tax transfer.
  1. Can I transfer my property tax base to any location in California?
  • Yes, under Prop. 19, homeowners can transfer their property tax base to a replacement residence anywhere in California.
  1. How often can I transfer my property tax base?
  • The property tax base can only be transferred once every three years.
  1. Are vacation homes eligible for the property tax transfer?
  • No, vacation homes are not eligible for the property tax transfer.
  1. Will Prop. 19 impact the county's revenue?
  • Prop. 19 may cause revenue loss for the county and the state, as it allows certain homeowners