Prop 19 Explained | The END of Prop 13 and What it Means for You! 

No matter how many taxes California imposes, it’s never enough.

Property tax was OK when value was stapled but came the 70s home values went crazy high driving many seniors out of their own homes, hence Prop 13. Thank you Howard Jarvis. With Prop 19 I think it will drive more people out of their inheritance resulting in more renters, higher rents and more homeless. California Association of Realtors didn't do us any favors, forced sales translates to higher commission, more profit (6% commision on a $2 million home is $120,000 for a few weeks of work, crazy isn't it?). I'm worried about my kids inheritance once I'm gone.

It shocks me that this 1). Made it on the ballot 2). Passed. I remember voting no for this and was shocked when it passed. The end of Prop 13 is the whet dream of the California legislature. This is one step closer to it becoming reality.

The sad reality to all of those who voted for prop 19 and were renters, when the kids inherit that property they are going to raise your rent to cover those taxes, or sell the property because it is no longer economically viable. The only winner here is the state with increased revenue.

I appreciate your explanation of Prop 19 which is clear and concise. So many people do not know about Prop 19 until they receive the new tax bill when they inherit the family home or business.

When the people find out that they been duped will not be very kind to the politicians, what was approved can be disapproved

I wrote software to implement Prop. 13 - (roll back assessments then recast them under the new law). And have personally benefited by owning a house in Silicon Valley for 35+ years. The flaw I see is that reassessments happen when ownership changes, which statistically happens every ~8 years for houses, but far less often for business-owned property - so, for instance, the Chevron refinery acreage in Richmond, or the Bank of America headquarters in downtown San Francisco have never, and probably will never be reassessed. The solution is to split the tax roll and reassess business properties on a schedule unrelated to ownership transfer.

This is totally unfair to someone who wants to keep their childhood home but can’t afford the new property taxes. Having unstable property taxes could be used to kill the American dream by triggering inflation killing the economy then the government taking the homes with tax liens and selling homes back to Wall Street for pennies on the dollar. Owning a home is the cornerstone of most peoples lives, retirement, and legacy for their family.

Prop 19 was pushed and supported by the Realtor association. It had a smoke screen presentation that only clearly explained the fluffy side of it and not the main negative impact to the heirs , our children. It’s really sad. My kid won’t be able to afford the reassessment and the significant uplift in property tax. He would have to sell it which what the realtors want. Especially all the homes that were purchased a long time ago with relatively really low property tax in the Bay Area. Realtors (aka Sharks) love 19.

Thank you for an excellent videos explaining the impact of Prop19, and the damage it has done to families, people are working to fix it.

You know dam well the people of California did not vote for this especially during the pandemic.

We must vote to overturn prop 19.

There are other taxes and fees attached to the property tax rolls that continue to rise each year.

From the day 13 passed California has tried to defeat its purpose

The whole point was, if you keep your home until you get old and cant work any more/retire, you won't loose the home because of taxes.

Unfortunately, the people who voted for this were largely duped into voting for it because of the marketing. Marketing went something like this: "If you're retired, you'd want to transfer your Prop 13 exemption to another house - wouldn't you?" And the people who were barely paying attention and didn't bother to read the proposition became suckers and voila! - we have children of parents who paid off their house and maintained it for 30, 40, 50 years who have to make very tough choices. The arrogance of governments who think they are ENTITLED to money from houses that they didn't pay a nickel for is just sickening.

I didn't know that Prop 13 was so gutted. Thanks for the education.

A technical issue to your commentary is that the Props do not protect taxes, they protect the assessed value (Prop 13 caps the annual increase in AV change to a max of 2%, but allows a drop into the negatives if the declared CPI drops). If voters vote for various bonded indebtedness and they often do, then the taxes themselves easily can exceed a 2% increase...and when various direct assessments (these have nothing to do with the assessed value, but are generally levied on physical characteristics...lot size, improvement size e.g.) are levied on the secured tax bill there can be even more accelerated changes in the taxation.

If Prop 13 is still in effect, why is my property tax going up 20% each year in California?

The original Prop 13, had NO protection for parent child inheritance transfers. The law was changed to exempt such transfers, now it has been changed back. “The are no solutions, there are only tradeoffs” - Thomas Sowell. The reason Prop 13 was passed was to prevent, residents from being evicted for higher taxes based on annual reassessment. The culprit is government hungry for every dollar that it can collect.

Don`t forget they add as many fees as they like. Like Fire Department fee. When 19 passed we decided to move! We have been gone 16 months! What a re-leaf. We now live in the warmest city in Wyoming. Thermopolis. Our property taxes are .56 and no fees. Very Low Crime and Nice people who keep to themselves. The beauty of the State is overpowering. It took a year or so to adjust! But were so happy here. Our home cost $ 189 000.00 our taxes are $ 1350.00 per year. Our same home in California would cost $ 600 000.00 With property taxes around $ 7000.00 per year. Right now California is in debt 46 Billion and Growing. They will find new taxes and fees to pay for it! And no one can stop them. If Your thinking about getting out? Geter Done!!

Great Breakdown!

Real Estate does not go up in value the Dollar just goes down.

Thank you for this invaluable information.

It’s interesting that so many people are oblivious to the obvious reasons prop 19 passed. While realtors were the “monied” interest that put this forward, the inheritance aspect of prop 13 was essentially subsidizing the children of the elderly home owners this was meant to keep property taxes low on. For everyone acting like they were “owed” their parents tax assessment, your essentially saying, “hey not only do I get this family wealth asset, I should get a significantly lower property tax than the person who would have to buy it.” Significantly lower property taxes on the properties inherited had to be made up by everyone else that had to purchase a house on the market. All those people voted for it because they weren’t going to inherit and they didn’t want to subsidize inherited wealth. And I understand this as someone who’s inheriting a California home. 🤷‍♂️

The lies, deceit and corruption of California politicians knows no bounds.

The protected tax is really important because part of the American Dream is to work, buy your home and after 30 years you can retire and live off retirement. But without the protected tax, you won't even be able to pay the reassessed tax with retirement. I mean you buy a house for $100k and by the time you retire it is assessed at $1Million...the tax rate is the same as a full time minimum wage job! So you can't retire there. Also if you can't transfer thst protection to family, the family may also not be able to afford the tax so it will be a forced sale.

My house is 3.4 million... The math in your example was spot on for my case. I know you guy from Len Tillem. He is missed.

And you can only deduct $10,000 of state and local taxes. The state income tax is usually more than $10,000 so you can’t write off any property taxes.

Prop 13 WAS AWESOME!!!!

Are there other states with similar prop 19? Are there states WITHOUT prop 19 type of tax? Move in within a year "protects" the primary residence. What about a rental property in a trust? Child/trustee moves in within a year, also "protects" taxes?

For Prop 19 to become effective when you are 55 do you have to be living in your primary residence at the time of buying your new property ?

What would happen if the primary residence gets gutted and a brand new home is rebuilt on the land? Would the first 1 Million still be protected or would the entire property be reassessed as a new property and lose the protections?

So are rentals being reassessed now or when the owner dies? I had no idea.

What seduced people into choosing 19?

Did I understand the video correctly in that if the parents' house becomes the child's primary residence and the child gets to keep the parents' property tax BUT at some later date (months or even several years later) the child moves out without selling, then the property is reassessed?

what does plan ahead mean?

THAT might explain the big bump in California homelessness

Dineyland in Calif. is on Prop 13

I would like Property Taxes to be cut MUCH LOWER for senior citizens over the age of 70 or 75 for properties bought by them in the last 20 years and they have social security income and limited other monthly income. Those taxes could be well over 15-20K a year as it stands now.

Great video and explanation. So who is the one that asses the house for FMV after death? And will that be the same FMV that will be used for the step up in basis? My wife and I live in my wife's mom's house. Mom has the house and all property in a trust. Current taxes are based on let's say $600,000 If the FMV is assessed at 1.5 million, and the first million is protected, does that mean her taxes will actually go down or remain the same? (based on $1,500,000-$1,000,000 = $500,000)? I am guessing it won't go down as there must be some protections for the state to not lose tax revenue? Or what if the FMV is assessed at $1,600,000, our taxes could remain the same? Also I take it that even though the house is in a trust, and we don't dissolve the trust, we can't keep the same tax rate can we? Thanks !

We pay 10x more property taxes than our neighbor who has Prop13 and similar lot developments…and we have $100k in permitting whereas, Prop13 property has zero permitting costs for same development. Prop13 has devasted the tax base of this rural community. Especially, after the devastating CZU Fires which burned down Prop13 homes which were substantially under insured. Recovery construction will include the higher taxation when Prop13 is lost. Therefore, only 15% of the owners can afford to permit&rebuild. BTW, Prop13 only applies to property owned prior to cut-off date of 1979.

Will my property tax increase if I change my initial 60-40 home co-ownership with my sister to my partner? I've already paid off the house.

**Not looking for legal advise** but what about placing your home into an LLC where you can name your kids the managing member

What if the child has lived in the house all of their life ???

I plan on staying in my home, have no children, and am married. Do I need to plan for anything in light of Prop. 13/19?

What if our child is married and to them alone excluding the inlaws leave your estatem Though they are married?

Keep the way it

Couldn't have happened in a better state!

This assures homeowners will eventually pay up as they move or downsize. Their only other option is to take all that increased value is to leave the state and spend that profit elsewhere. Who keeps their massive tax break under Prop 19? Big corporations. Corp headquarters and lands under prop 13 pay pennies per $1k. That's why sales and income taxes have to keep rising.

So now the kids will just need to bury their parents in the back yard and forget to tell anyone.

What about transferring from a stepmom to her stepson?

At 14:01 , he starts to explain “proper planning”

My mortgage free house is in my trust. No children. If I leave it to a friend, what about the property taxes? Will my home be fully re-assessed?

it's very easy put all your property in a trust. A trust lives for ever. also to by pass the gain you have to 1031 exchange it. It's not that complicated.

side benefit.. this could reduce the assessed value? because the value of these homes will be less because prop 19? perhaps also this will reduce rents? google bard commentary on prop 19 and 13: Proposition 19 is a California law that was passed in 2020 and went into effect in 2021. It amends Proposition 13, which was passed in 1978 and capped property taxes at 1% of assessed value, plus local additions. Prop 19 makes several changes to Prop 13, including: Allowing homeowners over the age of 55, people with severe disabilities, and victims of wildfires or other natural disasters to transfer their property tax base to a new primary residence of equal or lesser value, anywhere in California. Closing the "parent-child exclusion" loophole, which allowed parents to transfer their property tax base to their children without reassessment. Under Prop 19, children can only inherit their parents' property tax base if they live on the property as their primary residence. Requiring certain types of commercial property to be reassessed at market value when transferred. Prop 19 was designed to make California's property tax system more equitable and to generate additional revenue for schools and local governments. However, it has been criticized by some for making it more difficult for homeowners to afford to stay in their homes, especially in areas where property values have increased significantly. Overall, Prop 19 is a complex law with a number of implications for homeowners and businesses in California. It is important to consult with a tax professional to understand how Prop 19 may affect you specifically.

It'll be challenged. My feeling is that Prop 13 will stand.

The question is, are property taxes fair? The state does or does not need the tax income? Rentals should not be protected but, then the renters would have to pay. I am providing 6 units under "market" because my expense is lower and I am not a total dick.

Please help to make America great again 🙏 ❤️ 😢😢😢

Everything coming out of the no term limit Houses of reps in CA is new taxes or freedom removing laws or rules. Pretty sure the voters must vote on the prop before it becomes a law.

California keeps increasing taxes too the point there is nothing left for the owner

What to do about it? Leave the state immediately.

Wait, even under Prop 13 our property was reassessed regularly over the years in Northern CA (Humboldt).

Prop 13 doesn't just protect a long time property holder from being "crushed by increases in property taxes", it shifts the tax burden to newer property buyers who have to take on an increased tax burden. There are no free lunches.

This will be a reason why California's housing market will eventually end up dead! How is anyone gonna be able to afford a home if the taxes go through the roof?!

Oh please! CA governments NEED more taxes because of all the things they are not fixing! For example, SF is spending $700M this year to not fix their homeless crisis. LA is spending $1.3 BILLION - 10% of their entire city budget - to not fix THEIR homeless problem. And the state kicks in another $4B annually to help not fix the homeless crisis. And, of course, all those carbon taxes in CA will certainly not fix the climate crisis because - it just takes more cash!

Yeah and how much are these experts going to cost?

It seems that many Politicians today lean/push towards a similar (not exactly the same) recipe that Fidel Castro implemented in Cuba

I don’t remember seeing this prop 19 . It’s a ripoff. Who put this prop to the voters?

Every story about what the Pinheads under the dome in Sacto and Greasy Gavin are doing makes me happier that I escaped Kalifornistan for life in a freer state. The politicians are obviously NOT the only problem because idiot voters vote for these horrible propositions and the politicians making things worse.

thank you good info !

Actually...your "extreme" example is very much a reality. I knew folks who bought a home in LA for $40,000 in the 70s, but now it's worth 1.3 million. Their property tax is only 2,000 a year even though it should be 11K a year, and of course they passed it down to the next generation of kids.

Prop 13 is fair for Calif residential landlords because there is rent control.

Crushed by taxes is right. My parents say they could not survive wo this and let us eat and send kids to school.

I see you do not disclose the planning - I had to watch for almost 15 minutes to see that you spent most of the video telling me how much the tax increase would be - the Mt View story of the teacher from the Valley was superfluous ... sigh

I have friends that have left California because of Prop 19 and now that they are going for socialized medicine my wife and I who were both born in California and in our late sixties are looking to move out of the state the Democrats have destroyed the dream that we used to have in California

The real question is what happened to Corporations? They were the true benefit of Prop 13. So did Corporations get the majority of the benefit because they don't die?

They will find anyway they can to suck your blood. Where does all this money go, the roads suck. People on the street. Makes me sick,sick,sick.

The bottom line is that you cannot actually own property in the US. Even if you pay it off, you have to pay rent to the government.

We can soon say goodbye to middle class home ownership. We can always rent from Blackrock, Vanguard or State Street once they own all the housing.

🙄🤷‍♂"You'll own nothing, and be happy." Ida Auken; WEF et al 🤣🤣😂🤣

Nothing is Certain but Death ☠ and TAXE$ 👺

People did vote for 19 without reading and understanding it carefully. They thought it's better than the 13. Sorry we were all made a big mistake and were cheated by whoever created it rules 😢😢😢😢

Having recently inherited my father-in-law's property in Irvine, which was purchased for $48,000 and sold for $1.4 million, we are very aware of this. It actually makes sense. My mom, meanwhwile, is still paying taxes on the 1982 base value of her property in Seal Beach. She cannot pay for what the current value would be. However, I can, and will pay when she passes away.

Property Taxes are a joke. You don't woe land, you're leasing it. Stop paying the taxes and they seize your land, which is crap. Also, taxing you on unrealized gains (gains on paper only) is robbery.

So now I have to pull out the violins for a lady who was given a 3M home?

If your child wants to become a teacher or nurse, they won‘t be able to afford the house they grew up in.

Another 500,000 people are going leave because of that. You can always visit stay at state parks and camp. Or an affordable hotel. The place is doomed.

I look forward to that time when "They will not build and someone else have occupancy; . . . . and the work of their own hands my chosen ones will use to the full. They will not toil for nothing. . . . . "-- Isaiah 66:22-25.

California property owner speaking here: California needed this. Watching 2nd and 3rd generation inheritors pay 1982 property tax rates on homes - and their income properties - while rents and home values have eluded most working Californians - is a disgusting show of entitlement. For those at the back of the room: every other state with property taxes reassess regularly, even if those properties stay with same owner for decades. That's why homes are more-affordable in other states -and why you're going to be very disappointed when you look at property taxation in those states.

No American truly owns property in the United States. If you fail to pay your property taxes what happens????

Cali. Can’t sustain their retirement obligations. They need your money so the retired public and government state employees can retire, with their over inflated retirements.

I pay $2000 on a $1.1 million home.

I hope that prop 13 is reformed ,My childhood home in Malibu (65k in 1974)is worth 10 million (zillow) yet mother pays only 2 k a year in taxes now how fair is that?

With the worsening wealth inequality in this country, I think this a step in the right direction to mitigate that. I am not too sympathetic to rich kids (or those who will be rich through inheritance) not getting full value of assets that they didn't work for.

California voters. That says it all.

I'd like to thank the Legislature for sticking the knife in our backs again. California has been going downhill for the last 45 years. Proposition 13 was a good thing.

The problem with Prop 13 is the burden it puts on new, often young, homeowners. Prop 13 remains in place and is actually better since you can sell your house and purchase a similar or lesser valued home and keep the same tax base. I doubt than anyone ever in their wildest dreams thought that you could pass on property to future generation after generation after generation and still keep the same tax base. Remember, if 1/3 of the people get a deal the other 2/3rds have to pay more. All in all, it's a fair law

CA citizens are not so stupid to vote for Prop 19. I have a feeling that our democracy has been lost.

Why would ppl vote to stop generational wealth is beyond me. Middle class no more. Either below poverty level or wealthy. Obscene