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Palm Springs, CA
Recognizing that property taxes can be a significant financial burden for many homeowners, especially seniors and individuals with disabilities living on fixed incomes, California state laws provide various forms of relief to alleviate the property tax burden for those who qualify.
One such program is Proposition 19 approved by California voters on November 3, 2020.
Essentially, if you are a California resident over 55, and are moving from any other California county, you may be able to transfer your lower property tax base with you.
The proposition 19 fact sheet gives this example for a base year value transfer stating:
“If the market value of the replacement is more than the market value of the original, then the difference will be added to the transferred value. (This assumes the replacement property is purchased before the original. If the replacement property is purchased after the original, depending on the time period when the replacement was purchased, the amount above five percent (5%) or ten percent (10%) over the original property’s market value is added to the transferred base year value.)
Original Taxable Value = $300,000 | Original Market Value = $600,000 | Replacement Market Value = $700,000 Since the replacement’s market value is $100,000 more than the original, the difference in market value is added to the transferred value.
Therefore, the taxable value of the replacement will be $400,000 ($300,000 + $100,000).“
In more simple terms, say you are over 55 years old and have owned a home in San Francisco you bought years ago for 350K but is now worth a lot more, you can essentially buy a property in Greater Palm Springs based on today’s rates and work with the County Assessor where the replacement property is located to transfer your lower property tax base with you based on the above formula.
And it gets better. Where the state used only allow this to happen one time, now, with the passage of proposition 19, you are able to transfer your property tax three times.
If you are moving to California from out of state, don’t feel too left out. While you cannot bring your property tax amount from an out of state dwelling, if you move from one home to another in Greater Palm Springs, are over 55, and are a bonafide California resident at the time, you can also take advantage of Proposition 19 up to three times.
(Disclaimer – The information provided in this article does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Please reach out to a legal or tax professional regarding all matters discussed in this article. Read about Proposition 19 on this link: https://www.boe.ca.gov/prop19/#Introduction )
(The Author, Eric Gray, is a REALTOR®️ with Better Homes and Gardens Desert Lifestyle Properties, CA DRE 02225444.)
