Does Prop 19 apply to inherited rental properties or vacation homes in California?

No. Inherited commercial real estate, multi-family investment properties, second homes, and vacation cabins are 100% reassessed to current fair market value upon transfer to children.

How do I file for a Prop 19 base transfer with my county assessor?

You must file Form BOE-19-B (Claim for Transfer of Base Year Value) with the county assessor’s office in the county where your replacement property is located within three years of purchase.

Proposition 19 California Property Tax Guide (2026)

California Proposition 19: Property Tax Base Transfers, Inheritances & Mortgages

Approved by California voters, Proposition 19 dramatically overhauled property tax rules. It expanded tax base portability for senior homeowners and disaster victims while significantly narrowing property tax inheritance protections.

LoanPlace Regulatory & Housing Advisory

California Tax Policy Analysts • LoanPlace California

What Is California Proposition 19?

Effective in 2021, Proposition 19 (The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire/Natural Disasters Act) amended the California Constitution. It created two distinct reforms: expanded tax base portability for seniors and disaster victims, and strict limitations on intergenerational family property transfers.

Base Year Value Transfer for Homeowners 55+ and Disaster Victims

Eligible homeowners can sell their primary residence and transfer its Proposition 13 factored base-year assessed value to any replacement primary residence located anywhere within California. This can be done up to three times (and without limit for disaster victims).

Equal or Lesser Value: If the replacement home is equal or lower in value than the sold home, the entire original base value transfers, keeping property taxes virtually unchanged.

Greater Value: If the replacement property is more expensive, the dollar difference between the sales price of the original home and the purchase price of the new home is added to the transferred base value.

The New Family Inheritance Rules (Parent-to-Child Transfers)

Prior to Prop 19 (under Prop 58), parents could transfer a primary home of any value and up to $1 million of other real estate to children with zero reassessment. Under Prop 19, properties that are not used as the child’s principal residence are reassessed to full market value. If the child does make it their primary home, the exclusion is capped at the original base value plus $1,000,000 (adjusted biennially for inflation).

How Prop 19 Affects Mortgage Underwriting and Pre-Approval

When purchasing a California home, buyers often mistakenly look at the seller’s current property tax bill. Under Proposition 13 and Prop 19, the county assessor reassesses the property upon transfer based on your actual purchase price. LoanPlace calculates qualification using the new 1% to 1.25% assessed purchase tax figure.

Frequently Asked Questions

Clear, direct answers for California homebuyers, refinancers, and real estate professionals.

You have two years from the date of selling your original primary residence to purchase or complete construction on your replacement primary residence in California.

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