Understanding Prop 19 and Prop 13 in the Bay Area
As Bay Area real estate experts, the Oldham Group is here to guide you through the complexities of California's property tax laws. Let's explore how Proposition 19 and Proposition 13 affect homeowners in 2024.
Proposition 13: The Basics
Passed in 1978, Prop 13 remains fundamental to California's property tax system:
- Caps property taxes at 1% of assessed value
- Limits annual increases to 2% or inflation rate, whichever is lower
- Reassessment occurs only upon ownership change or new construction
Proposition 19: Game-Changing Updates
Implemented in 2021, Prop 19 introduces significant changes:
For Homeowners 55+
- Transfer tax base to a new home anywhere in California
- Buy more expensive homes while retaining much of the tax base
- Use this benefit up to three times
Inheritance Rule Changes
- Inherited homes must be primary residences to maintain the original tax base
- Property tax benefit capped at taxable value plus $1 million
Impact on Bay Area Real Estate
These laws create both opportunities and challenges:
- Increased mobility for older homeowners in high-value markets
- Potential revitalization of more affordable areas
- Complex estate planning considerations for families
- Possible increased competition in certain markets
How We Can Help
The Oldham Group offers expert guidance on navigating these laws across Santa Clara, San Mateo, Monterey, and surrounding counties. Whether you're in San Jose, Palo Alto, or Santa Cruz, we're here to help you make informed real estate decisions.
Contact us today to learn how Prop 19 and Prop 13 might affect your specific situation and to explore your real estate options in the Bay Area.
