The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act (Proposition 19)
Frequently Asked Questions
The following information is intended to help counties establish uniform and effective administrative practices for making and reporting their annual gain determinations to CDTFA. Information about the requirements imposed by Regulation 35401 is also included.
General information
What is the effective date of 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 and added sections 2.1, 2.2, and 2.3 to article XIII A of the California Constitution effective December 16, 2020.
Section 2.1's limits on the parent-child and grandparent-grandchild transfer exclusions became operative February 16, 2021.
Section 2.1's new base year value transfer provisions became operative April 1, 2021.
Section 2.3's reimbursement provisions became operative on December 16, 2020.
Who is CDTFA required to reimburse under section 2.3?
CDTFA is required to provide full or pro rata reimbursement from the County Revenue Protection Fund to the counties and eligible local agencies with an aggregate negative gain (or revenue decrease) from the implementation of section 2.1 every three years, based on the counties annual gain determinations under section 2.3 (discussed below).
What are the periods for the counties' annual gain determinations under section 2.3?
Regulation 35401 requires annual gain determinations to be made for the period of February 16, 2021, through June 30, 2022, and for each subsequent fiscal year, beginning with the fiscal year July 1, 2022, and ending on June 30, 2023.
When are annual gain determinations required to be made?
Regulation 35401 makes January 31, 2024, as the deadline for the counties to determine their gains for fiscal year 2022-2023, and each subsequent January 31 the deadline for the counties to determine their gains for the prior fiscal year. However, counties should determine their gains as soon as practical and not wait for the deadlines.
The deadline for the counties to determine their gains for the period from February 16, 2021, through June 30, 2022, was not included in Regulation 35401 because it was retroactive. However, the gains for that period must be reported by the reporting deadline (discussed below); counties should determine their gains for that period as soon as practical, and counties should not wait for the reporting deadline.
What information is a county required to include in its annual gain determinations?
Each county is only required to include the annual positive or negative gain for the county and each local agency in the county under subdivision (a) of section 2.3.
If I have questions regarding CDTFA's responsibilities under section 2.3, who do I contact?
Send your questions to Prop19@cdtfa.ca.gov.
Registration
Who must register with CDTFA?
Regulation 35401 requires each county to electronically register with CDTFA for the county and the county's local agencies. Registration for all 58 counties was completed in June 2024.
Report Filing
What information is a county required to report to CDTFA?
Each county is required to report a separate positive or negative gain amount to CDTFA for the county and each local agency in the county for each of the three annual determination periods within the reporting period. The following table illustrates how County X would report the positive or negative gain for the county and Agency A and Agency B in the county.
| Gain for First Annual Determination Period | Gain for Second Annual Determination Period | Gain for Third Annual Determination Period | |
|---|---|---|---|
| County X | -$10,000.00 | -$20,000.00 | $5,000.00 |
| Agency A | $30,000.00 | -$5,000.00 | $40,000.00 |
| Agency B | -$8,000.00 | -$25,000.00 | -$30,000.00 |
When will counties have to report their gains to CDTFA?
Regulation 35401 requires each county to report the gains it determined for the county and each local agency in the county to CDTFA by January 31, every three years. Regulation 35401 makes January 31, 2025, the reporting due date for counties to report the gains they determined for the first three determination periods, which are:
- February 16, 2021, through June 30, 2022;
- Fiscal year 2022-2023; and
- Fiscal year 2023-2024.
Regulation 35401 provides an automatic one-month extension of the reporting due date. It also allows CDTFA to grant a county an extension of the reporting due date to April 30, if a state of emergency due to a disaster, as proclaimed by the Governor pursuant to section 8625 of the Government Code, is in effect in the county at any time during the month before or after the reporting due date.
How do counties report their gains?
Regulation 35401 requires each county to electronically report its gains through CDTFA's online services portal using a User ID and Password.
Can CDTFA make changes to the amounts the counties report?
No. Section 2.3 does not authorize CDTFA to make changes to the gains reported by the counties.
Will CDTFA audit the counties' annual determinations?
No. Section 2.3 does not establish a mechanism for CDTFA to audit the counties' annual gain determinations.
When is my report available to file?
Reports are available to file in the CDTFA Online Services every three years beginning December 2024.
When is the report due?
The report is due every three years beginning January 31, 2025.
How do I file a report?
To file a report, login to CDTFA Online Services and select Home Protection Act. Then, select the recent filing period and under I Want To heading, select File, Amend, or Print a Return/Report.
Can I make changes to my report after is has been submitted?
Yes, you can make changes to the report filing prior to the filing due date.
To make changes, login to CDTFA Online Services and select Home Protection Act
- Select the current filing period.
- Under the I Want To function, select File, Amend or Print a Return/Report.
- Then, select the appropriate option from the I Want To heading.
Disbursements
How will counties receive payments for negative gains?
If CDTFA determines reimbursement is required, funds will be distributed by paper warrant directly to the county or local agency with the negative gain at the end of each three-year period.
Account Maintenance
How do a I add or close a local agency?
To add or close a local agency, login to CDTFA Online Services using your Username and Password and select the Home Protection Act account. Under the I Want To function, select More. Then select Add a Local Agency or Close a Local Agency.
How do I update a local agency address?
The local agency address is the mailing address to which any disbursements will be mailed for that agency. To update a local agency address, login to CDTFA Online Services using your Username and Password and select the Home Protection Act account. Under the I Want To function, select More. Then select Update a Local Agency Address.