Prop-19 Base Year Value Transfers

Frequently Asked Questions Effective 4/1/2021

1. Must both the sale of the original primary residence and the purchase of a replacement primary residence be completed on or after April 1, 2021?

No, the operative requirement is that the transfer of the base year value must be on or after April 1, 2021, and not the purchase or sale of either the original or replacement property. Assuming a claim is timely filed, the qualified transfer occurs on the later of either the date of the sale of the original primary residence or the date of the purchase or new construction of the replacement primary residence.

2. Must a claimant be “severely disabled” or “severely and permanently disabled” under Prop 19?

Revenue and Taxation Code 69.6 (b) (3) requires that a claimant be severely and permanently disabled to qualify for the base year value transfer.

3. On what date is the value of the original and replacement primary residences determined for purposes of calculating the transferrable taxable value?

The value of the original and replacement primary residences are determined for purposes of calculating the transferrable taxable value as of the date of sale or the date of purchase or completion of new construction, respectively.

4. How many times may spouses transfer an original primary residence pursuant to Prop 19?

Each spouse may transfer a base year value up to three times.

5. Prop 19 language requires that a replacement primary residence of a qualified person is purchased or newly constructed within two years of the sale of the original primary residence. Is there an allowance for an extension of the two-year requirement?

Unfortunately, no provision was made in the Prop 19 language to extend the 2-year requirement for any reason, including hardship.

6. Can the replacement primary residence be purchased before the original primary residence closes escrow?

Yes, there is no requirement as to the order of the events. The requirement is that the two events must occur within 2 years of each other. Please note: If you purchase or construct your replacement dwelling first and sell your original primary residence second, you will be responsible for the increased taxes on your replacement primary residence until your original primary residence is sold.

7. Does Prop 19 apply to Mello-Roos Bonds and other direct levies?

No, direct levies like Mello-Roos bonds or school bonds are not covered by Proposition 19. Proposition 19 only affects the taxable value.

Please Note: direct levies vary between properties and this can impact your tax bill substantially.

Assessor