In November 2020, Californians voted on Proposition 19, a ballot initiative that aimed to make significant changes to the state's property tax and inheritance laws. Proposition 19 marked a pivotal moment in California's legal landscape, sparking debates and discussions about property taxation, intergenerational transfers, and the overall impact on homeowners and the state's revenue. This article delves into the key provisions of Proposition 19 and explores how it has changed the law in California.
Background: Proposition 13 and Proposition 58
To understand the significance of Proposition 19, it's crucial to first grasp the context provided by previous propositions. Proposition 13, passed in 1978, significantly limited property tax increases by capping the rate at 1% of a property's assessed value. Furthermore, it restricted reassessment to occur only when a property was sold, ensuring that long-time homeowners enjoyed relatively stable property taxes.
Proposition 58, approved in 1986, allowed parents to transfer primary residences and up to $1 million in assessed value of other real property to their children without triggering a reassessment. This played a vital role in allowing families to pass down homes without imposing potentially burdensome tax hikes on the next generation.
Proposition 19: A Shift in Property Tax Rules
Proposition 19 brought forth substantial changes to these existing property tax regulations. Its main provisions include: