What is Prop 19 and how does it affect me?

Prop 19 (effective February 16, 2021) made two big changes to California property tax law:

Change 1: Tax base portability for 55+ and disabled homeowners

If you're 55+, severely disabled, or a wildfire/disaster victim, you can transfer your existing Prop 13 assessed value to a new primary residence anywhere in California, up to 3 times in your lifetime. Before Prop 19, this transfer was limited to certain counties and had price-match requirements.

This is the *good* part of Prop 19 — it gives senior downsizers and movers flexibility they didn't have before.

Change 2: Parent-child exclusion eliminated (mostly)

The change with bigger impact: the parent-child property tax exclusion was largely eliminated. Before Prop 19, parents could transfer their Prop 13 assessed value to children regardless of how the child used the property. After Prop 19: - Child must make the home their primary residence within one year of inheritance. - Even then, only the first $1M of the difference between assessed value and market value is protected.

For East Bay families, this often triples or quadruples annual property tax on inherited properties — making them economically difficult to hold as rentals.

This is general information, not tax advice. Your specific implications depend on factors a CPA or estate attorney needs to review.

I can give you a better answer with more information. Every situation I've handled in 18 years has had its own wrinkles. To talk it through with someone who's done this before: (510) 504-0402 during business hours, (406) 205-9003 anytime, or roger@grubb.net.