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Below you will find some detailed information on California's Prop 19. In short, Prop 19 provides a benefit to a few different homeowners in the state of California. If you're over the age of 55, and you sell your home, you have a two year window to buy a new one (within the state) and you can keep the same taxable value from your previous property, and have that applied to your new place. Additionally, if you've lost your home to a wildfire or other natural disaster you can have that old taxable value applied to whatever new property you buy. These benefits will not be automatically applied during your new purchase, you have to file a BOE-19-B with the county assessors office while in escrow on your new home. For more information visit, https://www.boe.ca.gov/prop19/ where you can read more, and access the necessary forms.
BASE YEAR VALUE TRANSFER
For Seniors and Severely Disabled Persons – Operative April 1, 2021
Allows homeowners who are age 55 or older, or severely and permanently disabled of any age, to transfer the “taxable value” of their principal residence to a replacement property up to three times anywhere in the state. “Taxable value” means the base year value plus inflationary adjustments, commonly referred to as a factored base year value. There is no limit to the market value of the replacement property compared to the original property, but the amount in excess of the original property’s market value is added to the transferred value. The replacement’s market value can exceed the original’s market value up to one hundred and five percent (105%) if the replacement is purchased within the first year after the sale of the original, or one hundred and ten percent
(110%) in the second year with no excess added to the transferred taxable value. To qualify:
- Replacement residence must be purchased or newly constructed within two years of the sale of the original property.
- Claimant must be at least age 55 years or older at the time the original property is sold.
- Both the original and replacement properties must be eligible for the homeowners’ or disabled veterans’
- exemption. The claimant must own and reside in the original property at the time of its sale or within two years of
- the purchase or new construction of the replacement.
- Either one or both the sale of the original property or the purchase/completion of new construction of the
- replacement must occur on or after April 1, 2021.
- The original property must be sold, and the replacement purchased for consideration. Consideration is defined as
something of value such as payment of cash, creation or cancellation of debt, or exchange of other property.
If qualifying based on age, submit form BOE-19-B, Claim for Transfer of Base Year Value to Replacement Primary Residence for Persons at Least Age 55 Years, to the County Assessor where the replacement property is located. If qualifying based on disability, submit both forms BOE-19-D, Claim for Transfer of Base Year Value to Replacement Primary Residence for Severely Disabled Persons, and BOE-19-DC, Certificate of Disability, to the County Assessor where the replacement property is located. Application(s) must be filed within three years of the replacement’s purchase or construction; and at the time of filing claimant must own and occupy the replacement property as their principal residence.
For Disaster Victims – Operative April 1, 2021
Allows victims of a wildfire or natural disaster to transfer the taxable value of their primary residence to a replacement residence anywhere in the state. The conditions and requirements are the same as the taxable value transfer for seniors, except there is no age requirement. However, the original property must have been substantially damaged or destroyed from a wildfire or Governor declared disaster, with over half of the market or improvement value diminished, to be considered “substantially damaged.”
How to Apply
Submit form BOE-19-V, Claim for Transfer of Base Year Value to Replacement Primary Residence for Victims of Wildfire or Other Natural Disaster to the County Assessor where the replacement property is located. Application must be filed within three years of the replacement’s purchase or construction; and at the time of filing claimant must own and occupy the replacement property as their principal residence.
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