Question on prop. 19 (house prices, transfer, purchase)

[V8 Vega]

If you bought your house before 1978 when prop.13 passed you got to keep your low tax base.
If you bought your house after 1978 but a long time ago when house prices were much lower your taxes are based on that low purchase price.
If your over 55 and sell and purchase another house at today's much higher price do you still get to keep the low tax base of your old house? Or are your taxes based on the current purchase price?

[CA4Now]

Does California require to pay tax similar to capital long gain tax when you sell your house and profilt $500,000:
https://www.city-data.com/forum/cali...x-similar.html

[NewbieHere]

He is asking about property tax, not capital gain.

https://www.boe.ca.gov/proptaxes/prop60-90_55over.htm



Here it is, prop60/90 allows you to keep lower base if it’s the same or less, not more. So if you are downsizing then it’s ok. I see no need for prop 19.

[Racer46]

Originally Posted by V8 Vega

If you bought your house before 1978 when prop.13 passed you got to keep your low tax base.
If you bought your house after 1978 but a long time ago when house prices were much lower your taxes are based on that low purchase price.
If your over 55 and sell and purchase another house at today's much higher price do you still get to keep the low tax base of your old house? Or are your taxes based on the current purchase price?

Only certain counties have allowed the exchange and only if the same size or smaller. Plus your taxes are still based on increased value, not the price you originally paid. The County can increase the value by 2% a year, so the taxed value is higher than you paid for it.

[sav858]

Originally Posted by NewbieHere

He is asking about property tax, not capital gain.

https://www.boe.ca.gov/proptaxes/prop60-90_55over.htm



Here it is, prop60/90 allows you to keep lower base if it’s the same or less, not more. So if you are downsizing then it’s ok. I see no need for prop 19.

So that only applies if you move between those 10 counties?

[NewbieHere]

Originally Posted by sav858

So that only applies if you move between those 10 counties?

Yes, OP lives in LA county.

[NewbieHere]

Originally Posted by Racer46

Only certain counties have allowed the exchange and only if the same size or smaller. Plus your taxes are still based on increased value, not the price you originally paid. The County can increase the value by 2% a year, so the taxed value is higher than you paid for it.

I think that’s what he meant, the Prop 13 kind of increase.

[NORTY FLATZ]

Originally Posted by V8 Vega

If you bought your house before 1978 when prop.13 passed you got to keep your low tax base.
If you bought your house after 1978 but a long time ago when house prices were much lower your taxes are based on that low purchase price.
If your over 55 and sell and purchase another house at today's much higher price do you still get to keep the low tax base of your old house? Or are your taxes based on the current purchase price?

Since everyone who has responded, has NOT answered your question, I'll do that now for you.
If you sell your house, the new owner gets to pay the new tax amount, BASED on their purchase price. You do NOT get to "keep your old tax amount" on your new house. You WILL be taxed, based on the price you just paid for the new place.
Prop 13 was designed to only be taxed at 1% of market value. California saw this and decided to "fee" us with lots of other costs, to make up for that tax shortfall. So, now it's not unusual to see "taxes AND fees" amounting to over 2.5% of a purchase price, with annual increases as fast as the law allows.

Glad you reminded me. I gotta send a check for thousands, to Big Dan McAllister soon!

Just to throw more complexity in...
Here's my fee structure for this year...

Unified school

Community College

Mosquito Surveillance

Vector disease control

City lighting

lighting landscape zone X

Lighting landscape zone XX

MWD water standby charge

CWA water availability

All these add up to some serious $$$$

[joosoon]

Why does the socal chapter of the ACLU oppose this? It's not even an issue in their wheelhouse.

[sav858]

Originally Posted by NewbieHere

Yes, OP lives in LA county.

So then Prop 19 in needed for all the rest of CA counties for this type of transfer?