How to Transfer Your Property Tax Base Under Prop 19
For many California homeowners—especially those who purchased decades ago—one of the biggest concerns when relocating is what will happen to their low property tax bill. In a state where real estate values have skyrocketed, selling a longtime home and purchasing another can result in a substantial increase in property taxes.
Fortunately, Proposition 19 allows certain qualified individuals to transfer the property tax base from their current home to a new one, avoiding the reassessment that would otherwise occur. While the law is widely known for tightening rules on inherited real property, it also provides one of the last remaining avenues for California homeowners to preserve their low property tax base.
How Property Taxes Work in California
Property taxes in California are based on a property’s assessed value, which is usually the property’s purchase price plus annual increases capped at 2 percent under Proposition 13. This system creates a significant gap between market value and taxable value over time. A homeowner who purchased a property in the mid‑1980s for $150,000 may have a taxable value of only $300,000 today, even if the home’s market value is $800,000 or more.
Selling that home and buying another would typically trigger a full reassessment at current market value unless the homeowner qualifies for what is known as a base year value transfer.
Who Can Transfer Their Property Tax Base?
Proposition 19 allows a transfer of the property tax base if the homeowner is at least 55 years old, severely and permanently disabled, or a victim of a wildfire or governor‑declared natural disaster. Homeowners age 55 and older may utilize this benefit up to three times in their lifetime. One of the major changes under Proposition 19 is that the transfer can now occur anywhere within California; previously, many counties restricted transfers to within the same county.
How the Transfer Works: Buying Down Versus Buying Up
If the replacement home is equal or lesser in market value than the original home, the entire taxable value transfers without change. For example, if the old home has a taxable value of $300,000 and is sold for $900,000, and the new home is purchased for $700,000, the homeowner simply carries the $300,000 taxable value over to the new home.
If the new home is more expensive, the homeowner can still transfer the taxable value, but the difference between the two market values is added to the original taxable base. For instance, if the old home has a taxable value of $300,000 and a market value of $600,000, and the replacement home costs $700,000, the difference of $100,000 is added. The new taxable value becomes $400,000, still far below the full market value of the property.
If the new home is purchased within one year of selling the original residence, the replacement can be up to 105 percent of the value of the old property before any upward adjustment occurs. If the replacement home is purchased in the second year, the threshold increases to 110 percent.
Key Requirements and Filing Deadlines
The replacement home must be purchased or newly constructed within two years of the sale of the original property. Both the original and replacement homes must be the homeowner’s principal residence. The required claim forms must be filed with the county assessor’s office in the county of the replacement home, and claims filed more than three years after the purchase will only apply prospectively—no refunds will be issued for prior years.
Special Rules for Disaster Victims
Homeowners whose property is substantially damaged or destroyed in a governor‑declared disaster may transfer their property tax base without meeting the age requirement. The same timing and residency rules apply.
Required Forms and Filing Process
The forms for this process are standardized statewide, but they must be filed with the county where the new home is located. Common forms include BOE‑19‑B for homeowners over age 55, BOE‑19‑D and BOE‑19‑DC for disabled claimants, and BOE‑19‑V for disaster‑related transfers. Homeowners should verify local requirements, as processing procedures vary by county.
Examples from the California Board of Equalization
If a homeowner sells a home with a taxable value of $300,000 and a market value of $900,000 and buys a replacement home costing $700,000, the taxable value of $300,000 transfers without adjustment. If the homeowner sells a property valued at $600,000 with the same taxable value of $300,000 and buys a replacement home costing $700,000, the new taxable value becomes $400,000, reflecting the market value difference.
Conclusion
Although Proposition 19 eliminated certain protections for inherited property, it expanded one of the most valuable remaining benefits for California homeowners: the ability to transfer a low property tax base when moving. For seniors, disabled individuals, and disaster victims, the opportunity to maintain a low taxable value can preserve thousands of dollars in annual tax savings.
However, the rules are strict, and the filing requirements are unforgiving. Homeowners considering relocation should plan proactively and ensure compliance with all statutory steps to avoid an unexpected reassessment.