Proposition 19 Effective Date 2/16/2021 or 2/16/2023?

SB-668 May Delay Proposition 19 from implementation on February 16, 2021 to February 16, 2023.

The purpose of this new bill is to provide time for the assessors, board of equalization, and the legislature to clarify ambiguities.

Although Proposition 19 is now law, the measure is silent on certain issues regarding implementation. A two year delay would give the state time to clarify how it will be implemented. It will also give families additional time to seek professional advice on a transfer of property to children.

Many voters were not aware that Proposition 19 repealed well established protections from tax increases when property is transferred from parents to children, and the law’s quick implementation date is a hardship for many families.

Proposition 19 repeals Proposition 58 (1986) and Proposition 193 (1996). The loss of these protections mean property will be reassessed to market value when its transferred from parents to children and sometimes grandparents to grandchildren. The only exception is if the person to whom the property is transferred moves in within 1 year and that property is that person’s principal residence.

County assessors and many tax payers have expressed concerns on how to implement a significant change to California’s property tax system so quickly. Proposition 19 is silent on many critical  implementation issues. Unfortunately Proposition 19 did not have companion legislation that would have clarified a host of issues.

To learn the status of SB-668 please contact the Howard Jarvis Taxpayers Association at (213) 384-9656 or State Senator Pat Bates’ office at (760) 642-0809.