What will Proposition 19 do to benefit Californians?
- Limits property tax increases on primary residences for homeowners over 55 years old, people with severe disabilities, and victims of natural disasters or wildfires by removing unfair location restrictions for people who may need to move closer to family or medical care, downsize, or find a home that better fits their needs.
- Limits property tax increases for victims of wildfires to replace a damaged home and limit damage from wildfires on homes through dedicated funding for fire protection and emergency response.
- Limits property tax increases on family homes used as a primary residence by protecting the right of parents and grandparents to pass on their family home to their children and grandchildren for continued use as a primary residence.
- Opens up tens of thousands of housing opportunities by making homes more readily available for first-time homeowners, families, and Californians throughout the state.
How does Proposition 19 increase housing affordability?
The initiative will allow homeowners who are 55 and older, people with severe disabilities, wildfire or natural disaster victims to transfer their current property tax base to a replacement home anywhere in California. By making it more affordable for seniors to move to a home that better fits their needs, it will open housing inventory to make more homes available for new families and first-time homeowners.
How does Proposition 19 benefit families?
The initiative would protect the right for a grandparent or parent to pass their family home onto their children and grandchildren so families can affordably move into the home as their primary residence, safeguarding family transfers which are currently under threat of removal or elimination. It will also open up housing opportunities by making homes more readily available.
How will Proposition 19 benefit local communities?
This initiative generates hundreds of millions of annual funding with long-term revenue of over $1 billion annually for fire protection, local government and school districts that can be used for vital resident services such as emergency response, county hospitals, health care, homeless services, and local housing programs. The initiative further protects counties by establishing a county offset fund, providing additional revenue protection year in and year out.
What is the fiscal impact to cities and counties?
This initiative will help cities, counties and school districts balance budgets and provide a boost to our state’s economic recovery from the COVID-19 pandemic, with long-term revenue of over $1 billion annually. It also provides local revenue for counties, cities, and special districts, and establishes a county offset fund, providing additional revenue protection year in and year out.[LAO Fiscal Report, October 2017; LAO Fiscal Impact 8/22/19]
How does Proposition 19 generate new revenue for fire protection, schools, cities and counties?
The initiative will stop tax schemes and deceptive practices that cost local governments and schools up to $1.5 billion every year. Specifically, it eliminates unfair tax loopholes used by East Coast investors, celebrities, wealthy non- California residents, and trust fund heirs to avoid paying a fair share of property taxes on vacation homes, income properties, and beachfront rentals they own in California. It will continue to preserve the intent of Proposition 58 and Proposition 193 that kept families home affordable when parents and grandparents passed down the family home to children and grandchildren who use it as their primary residence.[Los Angeles Times, 8/17/18, 8/24/18; San Diego Union Tribune, 8/17/18; LAO Fiscal Report, October 2017, LAO Fiscal Impact, 8/22/19; CA A.G. File No. 19-0003, Sections 2-3]