Tax Planning

Household Workplace Insights California Proposition 19: Implications for Property Tax Planning for California Actual Property House owners

In November 2020, California voters passed Proposition 19, a property tax bill that could have a significant impact on property tax planning for individuals who own California real estate.

Until Proposition 19 was passed, children and grandchildren who received California property by gift or inheritance could use Proposition 58 and Proposition 193 to transfer their parents ‘or grandparents’ property tax rate (based on the original purchase price for annually adjusted property at rate 13 increases). Proposition 19 repeals both Proposition 58 and Proposition 193, removing this property tax benefit for property passed on to children and grandchildren.

Proposal 19, effective February 16, gives individuals who own California real estate a small window of time to gift their children or grandchildren with property without reassessing property taxes.

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