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Proposition 19: A Silver Lining for Wildfire Victims

Proposition 19, passed by voters in 2020 and effective as of 2021, has faced widespread criticism for its hidden property tax increases on most inherited real estate. However, for homeowners affected by recent wildfires in Los Angeles, this law may offer a financial lifeline.

 

How Proposition 19 Helps Wildfire Victims

Under Proposition 19, eligible homeowners can transfer their factored base year value (assessed property value with annual adjustments) to a replacement primary residence anywhere in California. This can result in substantial property tax savings. Here’s how it works:

 

Eligibility Requirements

To qualify for this benefit, homeowners must meet the following conditions:

  1. Substantial Damage or Destruction: The original primary residence must have been significantly damaged or destroyed by a disaster for which the Governor has declared a state of emergency. The Los Angeles wildfires that began on January 7, 2025, during a historic windstorm, meet this criterion.

  2. Replacement Property Purchase Timeline: The replacement home must be purchased or newly constructed within two years of selling the damaged residence.

  3. Residency Requirement: The claimant must own and occupy the replacement home as their primary residence.

  4. Sale of Damaged Property: The original residence must be sold in its damaged state before transferring the base year value.

 

How the Property Tax Transfer Works

If the new property’s full cash value is equal to or less than the pre-disaster value of the damaged home, the property taxes on the replacement home will remain the same as those on the original residence.

 

Example Scenario

A homeowner purchased a property in 1970, and due to Proposition 13 protections, their factored base year value remains $300,000, resulting in property taxes of $3,000 per year.

However, before the wildfire, the home’s market value had appreciated to $2,000,000. After losing the home to the Los Angeles wildfire, the homeowner purchases a replacement residence for $1,900,000 in 2025.

 

Without Proposition 19:

  • The new home’s property taxes would be $19,000 per year (based on its market value).

With Proposition 19 Wildfire Relief:

  • The homeowner retains their $3,000 per year property tax rate by transferring their original home’s base year value.

 

How to Apply

To claim this benefit, homeowners must timely submit Form BOE-19-V to the county assessor’s office for the county in which the new property is located. 

 

Additional factors may affect eligibility, so consulting with an attorney can help ensure a smooth application process. For personalized guidance, feel free to contact our office. We are here to help you navigate these complexities and maximize your property tax benefits.

Questions about Proposition 19 and wildfires?

 

Contact us.

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