I recently had the pleasure of meeting with County Assessor Tom Bordonaro to discuss some important changes to state property tax law that will take effect in early 2021. For those of you who don’t know, the newly passed Proposition 19 increases the portability of tax bases among senior homeowners across county lines but imposes new limitations on the transfer of tax bases via family inheritance. In other words, residents 55 years or older who are moving into a new property can now carry their old tax base with them, regardless of that new property’s location in the state; they’re also allowed to do this up to three times.
Feel free to listen to our conversation in the video above, or use the timestamps below to navigate the discussion at your leisure:
1:00 - An introduction to Proposition 19 and the increased portability of California tax bases.
2:22 - New limitations on the transfer of tax bases to family members.
3:22 - How will these new limitations put pressure on our San Luis Obispo market?
4:30 - When the different components of Proposition 19 will go into effect.
5:22 - Tax bases can only be preserved if the property is inherited as a primary residence.
7:55 - Wrapping up today’s topic.
Special thanks to Tom Bordonaro for taking the time to help us make sense of this new tax law. As he said himself, much work will be needed to further clarify some gray areas in the legislation. Until then, Tom suggests that you consult with your attorney for advice on how to manage your real estate assets in the coming month or so. (The County Assessor’s Office can inform you of what may happen in a given scenario, but they cannot offer legal advice).
As always, reach out to me by phone or email with any questions or real estate needs you may have. I look forward to hearing from you.