What California’s Proposition 19 Means for Homeowners: Understanding Base Year Value Transfers
Recently, one of my longtime clients reached out about selling their Roseville, CA home of 19 years and purchasing a new construction property nearby. Along with the usual questions about market value and timing, they had one major concern:
How will California’s Proposition 19 affect their property taxes?
This is a common question among California homeowners considering a move—especially those who’ve owned their homes for many years and have enjoyed the benefits of a lower tax base under Proposition 13.
Let’s break down what Prop 19 means, who it helps, and how it can make a big financial difference for qualifying homeowners.
A Quick Overview of Proposition 19
Enacted on April 1, 2021, Proposition 19 introduced several significant changes to California’s property tax laws. While the measure covers more than one area, my clients were specifically interested in the section dealing with “Base Year Value Transfers.”
In simple terms, this provision allows eligible homeowners to transfer their existing property tax base from their current primary residence to a new home—potentially saving thousands in property taxes each year.
Understanding “Base Year Value”
To understand how this works, let’s go back to Proposition 13, passed in 1978. Under Prop 13, California properties are taxed at 1% of their assessed value, which is determined when the property is purchased. That value—called the Base Year Value—can only increase by a maximum of 2% per year until the property is sold again.
This long-term stability has protected homeowners from dramatic property tax hikes as home values across California have risen. For someone who bought a home 15 or 20 years ago, this lower tax base can be incredibly valuable.
The downside? Many longtime homeowners feel “locked in” because selling their home would mean losing that low property tax rate. That’s where Proposition 19’s Base Year Value Transfer comes in.
How Prop 19 Helps Homeowners
Under Proposition 19, eligible homeowners can transfer their original Prop 13 Base Year Value to a replacement home anywhere in California—even if the new property is more expensive.
To qualify, the homeowner must meet at least one of the following criteria:
- 55 years of age or older
- Severely disabled, or
- A victim of a Governor-declared disaster (where 50% or more of the home was damaged)
Common Questions About Base Year Value Transfers
Can the replacement property be worth more than the original home?
Yes. If your new home costs more than the one you sold, the difference in value will be added to your transferred base and taxed at 1%.
How many times can you use the transfer?
Eligible homeowners can transfer their Base Year Value up to three times. However, if you qualify due to a natural disaster, there’s no limit on the number of transfers.
Can you buy the new home before selling the old one?
Yes, but you must occupy the new home as your primary residence and file the claim once your previous home is sold. Until the transfer is complete, you’ll pay taxes on the full value of the new property.
Is there a time limit for completing the transfer?
Yes. The transaction must be completed within two years of either the sale or purchase—whichever comes first.
What if only one owner qualifies?
Only one of the owners needs to meet the qualification criteria for the transfer to apply.
How to Apply for a Base Year Value Transfer
Homeowners must file a claim with the County Assessor’s Office where the replacement property is located. This must be done within three years of purchasing the new property or, in the case of new construction, within three years of its completion.
The Bottom Line
The details of Proposition 19 can be complex, but for eligible homeowners, it can open the door to downsizing, relocating, or upgrading without losing the tax benefits you’ve built up over the years.
If you’re thinking about selling your home and buying another in California, especially in the Roseville or Greater Sacramento area, it’s worth exploring how Prop 19 could work in your favor.
For personalized guidance, I recommend consulting your County Assessor’s Office or visiting the California State Board of Equalization’s Proposition 19 page for official details on Base Year Value Transfers.