PROP 19 CHANGES
California voters gave the state’s 1978 law to limit property taxes a makeover on November 3, 2020, passing a measure that gives exemptions to the disabled, older homeowners, and wildfire victims. However, it takes away property tax breaks from people who inherit homes but don’t live in them. Proposition 19 passed by a relatively narrow margin.
Here is what they are saying:
PROS, Proposition 19 Limits Taxes on Seniors, Severely Disabled Homeowners, and Wildfire Victims; CLOSES unfair tax loopholes used by wealthy out-of-state investors PROTECTS Prop. 13 savings. Advocates include Disability Rights and Senior/Housing Advocates, Firefighters, Emergency Medical Responders, Business & Labor, CA Board of Realtors, Democrats & Republicans.
CONS, Proposition 19 is a billion-dollar tax increase on families. It takes away one of the best ways parents have to help their children—the right, enshrined in California’s Constitution since 1986, to pass their home and other property on without any increase in property taxes.”
The new law goes into effect on February 16, 2021. That means, if you need to make any gifting changes to protect the current property tax assessment for your family, you must contact your Estate Planning Attorney quickly. Visit HudackLaw.com Open Link in a New Window or call us at 714-351-3236 or 951-708-3577 today for more information about all of your Estate Planning needs.