For sellers, this law is one of the biggest opportunities in decades. Here’s why:
You can sell your long-time home, cash out equity, and move anywhere in California while keeping your low tax base.
You can downsize, upsize, or relocate closer to family without being penalized by today’s higher property tax rates.
You can do this not just once, but up to three times in your lifetime.
But with opportunity comes confusion. Below are the most common myths sellers hear about Prop 19—and the facts you need before making a move.
Proposition 19 FAQs for Home Sellers
❓ Myth 1: Only seniors can transfer their property tax base.
✅ Fact: While Prop 19 mainly benefits homeowners 55 and older, it also applies if you’re severely disabled or if your home was destroyed by wildfire or a natural disaster.
❓ Myth 2: You can only transfer your tax base once.
✅ Fact: Sellers can transfer their tax base up to three times anywhere in California. That means you can move more than once and still protect your savings.
❓ Myth 3: You must buy a smaller or cheaper home.
✅ Fact: You’re free to buy a more expensive home and still carry your old tax base. The only difference is that the price gap between your old home and the new one will be added to your taxable value.
❓ Myth 4: You can’t use Prop 19 if you’re buying a multi-family home.
✅ Fact: You can—as long as one unit is your primary residence. That portion keeps your low tax base. Any rental units on the property will be reassessed at market value.
❓ Myth 5: You can’t buy vacant land and build a new home with your old tax base.
✅ Fact: You can—if the new home is built and occupied within two years of selling your old home. The county assessor will look at the fair market value of the finished home (land + construction), not just what you spent. If the new home is worth more than your sale, the price difference gets added to your taxable base.
❓ Myth 6: Your original tax base always carries through no matter how many times you move.
✅ Fact: Each transfer is compared against your most recent sale price, not your very first home. For example:
Sell $1M home (tax base $200K), buy $1.2M directly → New base = $200K + $200K = $400K.
But if you sell $1M, then buy $500K, then sell $600K, then buy $1.2M → New base = $200K + $600K = $800K. The “middle step” reset the calculation and raised your tax base.
❓ Myth 7: Children can still inherit vacation or rental homes with the same low taxes.
✅ Fact: Under Prop 19, only a primary residence can keep the old tax base, and only if your child makes it their own primary home within one year. All other inherited properties are reassessed at full market value.
❓ Myth 8: If my child moves into my home, the tax base stays untouched.
✅ Fact: There’s a cap. If your home’s market value is more than $1M above the old assessed value, the extra is added to the taxable base.
❓ Myth 9: You must move immediately after selling to qualify.
✅ Fact: You have two years from the sale of your home to purchase or build a replacement property and apply for the tax base transfer.
❓ Myth 10: Prop 19 raised property taxes for everyone.
✅ Fact: No. General property tax rates remain the same. Prop 19 simply shifted the rules: it expanded mobility for sellers while limiting inheritance loopholes.
What This Means for You as a Seller
Prop 19 has unlocked flexibility that older California homeowners never had before. If you’ve been hesitating to sell because you didn’t want to lose your low tax base, now you can move freely—closer to family, into a home that fits your lifestyle, or even into something larger—without being crushed by a new tax bill.
At the same time, if your goal is to pass property to your children, you need to plan carefully. The inheritance rules have changed, and many families are only now realizing the impact.
The bottom line: Prop 19 is both a golden opportunity and a warning sign. It’s the perfect moment to explore your options, whether that means selling now or restructuring your estate plan.