Potential Portable Property Tax Break is a Game Changer for 55+ Californians!
Are you California dreaming of a gorgeous new home for your next chapter? If you’re a 55+ California resident and your current home has gained significant value over the years, you’re probably happy with your property tax bill. You may also be hesitant to make the move to a new home if it means saying goodbye to that impressively low tax rate.
This is because your property taxes likely aren’t based on the current market value. They’re most likely based on the value of your home when you bought it, thanks to Prop. 13, which has been around since 1978. It could be quite the financial burden to see your taxes soar when moving to a new home.
Well, good news! Thanks to recently passed Prop.19, you can buy a new home anywhere in the state of California and you may be able to still hold onto your lower property taxes.*
How Does Prop. 19 Work?
According to the California Board of Equalization, Prop. 19 allows California residents ages 55 and older to sell their current home, purchase a new home in state, and transfer their lower tax rate right along with them in most cases.
How could this impact you? Let’s imagine for a moment that your current home has an assessed value of $300,000, but a market value of $1,000,000. Let’s also imagine that your dream retirement home has a price tag of $1,000,000. In this case, the assessed value of your new home could be $300,000 under Prop. 19 for those who qualify, rather than on the $1M purchase price. That’s some potential major savings on your property tax bill!
Even better news? If you’re like many 55+ California residents who are looking to downsize for your next chapter, you’ll be able to have even lower property taxes in your new home thanks to Prop. 19! Let’s picture you back in that home with an assessed value of $300,000 and a market value of $1,000,000. If you find the perfect floorplan in your ideal community for $750,000—which is 25% lower than the market value of the home that you’re selling—your new assessed value could be up to 25% lower than the assessed value of your old home: $225,000. No matter the size of your new nest, you’ll could get a big break on your taxes!
Plus, unlike past propositions that have tried to give some property tax relief to the 55+ demographic, Prop. 19 applies to in the entire state of California, so there’s no limit to where you can settle into a new home. Even better? It’s not a one-time deal. You may be able to carry that low property tax rate with you through up to three separate moves!
Check out the graph below on the differences between Prop. 13 and Prop. 19
So, if you’ve been dreaming of a new home and the concern of skyrocketing property taxes has left you feeling stuck, Prop. 19 could be a game changer! Pair this potential portable property tax break with today’s historically low interest rates and it’s hard to think of a better time to make your move.
When you’re ready to start looking, we have lots of incredible options to consider at our Trilogy® 55+ and Resort Communities in California! You could have a brand new home, the unparalleled Trilogy lifestyle, and new friends and neighbors who are as excited about this next chapter as you are—all while potentially holding onto your low property tax rate. This could leave more money in your pocket for what really matters to you—like traveling, paying for your children’s college education, or perhaps adding some stylish upgrades to your new Trilogy home.
What are you waiting for? Give us a call at 800.685.6494 to learn more about resort living at one of our California communities . Join the Movement. Live Happier®!
* This information in not intended to be, and should not be considered legal or tax advice. We encourage you to discuss Prop 19 and your specific situation with your legal and/or tax advisor. Additional information on Prop 19 can be found at the California Board of Equalization website here