SAN DIEGO (KGTV) - A proposition aimed at easing the housing crisis in California takes effect April 1st.
Proposition 19 spells big savings for Californians who want to downsize at a later stage of life.
"It allows any California home owner who is 55 years or older to be able to transfer their property tax base from their current property to any property in the state," Presidents of the California Association of Realtors Dave Walsh said.
Walsh said that also applies to those with severe disabilities and wildfire or other natural disaster victims. "So the same rules apply, the old rules didn't allow for both of those categories to always have that benefit so now they also now have that benefit throughout the state." He said.
The proposition expands their ability to move to anywhere in the entire state, compared to the same county. It also allows those groups to move three times and keep their same property tax rate.
Walsh said you can buy a less or even a more expensive home. "What happens is what's called a blended tax rate," he said.
If you buy a more expensive home, you will keep the same property tax rate up to the cost of your original home, then the difference would be added on at the current property tax rate.
"Proposition 19 is the most significant property tax savings measure that's passed by the California voters over the last several decades," Walsh said.
He said this will affect millions of Californians. "There are 4.1 million seniors, only, who are eligible to use this in 2021 they tell us, and that number is going to be growing to 5.6 million by 2030 in California." He said.
The proposition allows homes and farm land to be included when passing down property through generations.