The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act (Proposition 19)
The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act (Proposition 19) was approved in the November 3, 2020, General Election. Proposition 19 amends Article XIIIA of the California Constitution to:
- Beginning April 1, 2021, allow taxpayers who are severely disabled, over the age of 55, or victims of a wildfire or other natural disaster, to transfer the taxable value of the taxpayer's primary residence to a replacement primary residence regardless of the replacement residence's value or location, provided the replacement residence is purchased or constructed within two years of the date the original residence is sold. Limits a person who is over fifty-five years of age or severely disabled to three transfers under these provisions.
- Beginning February 16, 2021, limit the parent-child and grandparent-grandchild exclusion from change in ownership of a family home or family farm.
Proposition 19 allocates any additional revenues or savings to the state, as calculated by the Director of Finance, from the implementation of the Proposition 19 property tax changes described above to the newly created California Fire Response Fund and the County Revenue Protection Fund, as follows:
- 75 percent to the California Fire Response Fund, which shall be appropriated by the Legislature, to expand fire suppression staffing.
- 15 percent to the County Revenue Protection Fund, which is continuously appropriated, to reimburse counties and local agencies with a “negative gain” resulting from implementation of the Proposition 19 property tax changes described above.
Who Should Register
Counties will need to register with the California Department of Tax and Fee Administration (CDTFA) and annually report the revenue effect from the implementation of the Proposition 19 property tax changes described above for the county and for each local agency in the county, so that CDTFA may provide reimbursement to these entities.
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