A California homeowner dies and leaves her home to her adult son in her will. The son moves into the home and uses it as his primary residence. Under Proposition 19 (effective February 2021), what happens to the property's assessed value for property tax purposes?
Correct Answer
C) The assessed value is partially excluded from reassessment — the parent's base value is preserved up to $1 million above the current assessed value, provided the child uses it as a primary residence
Under Proposition 19 (which replaced the broader exclusions of Propositions 58/193), a parent-to-child transfer of a primary residence is eligible for a partial exclusion from reassessment. The child must use the property as their own primary residence, and the exclusion applies only to the first $1 million of the difference between the current fair market value and the parent's assessed value. Any value above $1 million over the parent's base is added to the parent's base for the new assessed value.
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Previous Question
A California property sells for $1,100,000 and is reassessed at that amount. The property is subject to the Proposition 13 base tax rate of 1%, a voter-approved bond rate of 0.05% of assessed value, and a fixed Mello-Roos charge of $2,400 per year. What is the total annual property tax bill?
Next Question
A California property sells for $425,000. The county documentary transfer tax is $1.10 per $1,000 of consideration. The deed is recorded, and the documentary transfer tax stamps appear on the deed. How much is the documentary transfer tax?