Thinking about selling, downsizing, or passing a home to family on the Westside, but unsure how Proposition 19 affects your property taxes. You are not alone. Prop 19 changed what you can transfer when you move and how taxes work when a home is inherited, which matters a lot in high‑value areas like Pacific Palisades. In this guide, you will learn how portability works, what changed for inheritances, and the practical steps to take in Los Angeles County. Let’s dive in.
What Prop 19 changed
Prop 19 made two big shifts in California property tax rules.
- It expanded tax base portability for eligible homeowners. If you are age 55 or older, severely disabled, or a wildfire or disaster victim, you can transfer your lower taxable value to a replacement primary residence anywhere in California, subject to rules and limits.
- It narrowed the parent to child and grandparent to grandchild reassessment exclusion. The exclusion now focuses on a family home that the child uses as a primary residence, with a value limit. Most other inherited properties are reassessed to market value on transfer.
The net effect in Pacific Palisades is clear. If you qualify and want to move, portability can help you keep a lower tax base. If you plan to leave a home to family, expect reassessment unless a child moves in and qualifies under the rules.
How portability works for Westside moves
Portability applies to your primary residence and a replacement primary residence. If you qualify by age, disability, or disaster, you can transfer your base year value to a new home in any California county. That can reduce the property tax bill compared to a full reassessment at the new home’s market value.
The taxable value transfer is adjusted based on the price difference between the home you sell and the home you buy. If the replacement home costs more, there is an upward adjustment. If it costs less, the transferred base can still lower the new tax bill compared to buying without portability. The exact calculation is done by the county assessor under state rules.
There is a limit on how many times you can transfer your base year value. Special rules may apply for wildfire or disaster victims. Because procedures and limits are administered locally, you should confirm the current details with the Los Angeles County Assessor before you make a move decision.
Common scenarios in Pacific Palisades
- You plan to downsize. You sell a long‑held Palisades home and buy a smaller residence in Brentwood, Santa Monica, or another county. Portability can help you keep much of your lower base, which can make the move more affordable.
- You want a lateral move. You sell in the Palisades and buy closer to family elsewhere in California. Even if the new home costs more, a partial transfer can still reduce taxes compared with a full reassessment.
- You are a disaster victim. If you lost your primary residence in a wildfire or natural disaster, special transfer rules may apply. Contact the Assessor to learn what documentation is needed.
Inheritance rules after Prop 19
Under prior law, many parent to child transfers avoided reassessment, including some non‑primary residences. Prop 19 changed that. Now, the reassessment exclusion is largely limited to a family home that the child uses as a primary residence and files the required claim.
There is also a value limit. The exclusion covers the original taxable value plus a statutory cap. If the market value at transfer is above that excluded amount, the excess is reassessed at market value. In other words, you may keep much of the parent’s taxable value only within that limit.
Other inherited properties, like rentals, vacation homes, or commercial property, are generally reassessed at market value when transferred to children or grandchildren. If the child does not move into the family home as a primary residence and maintain compliance, reassessment usually follows.
What this can mean for heirs
In the Palisades, the gap between an old taxable value and current market value can be substantial. A reassessment can lead to a large jump in annual taxes. That can affect whether a family keeps or sells a property.
If a child intends to live in the home as a primary residence and qualifies, a portion of the lower taxable value may carry over, subject to the cap. If not, plan for a reassessment and higher ongoing costs. Many families also review estate plans to align with the new rules.
Steps to take in Los Angeles County
Getting organized early can improve outcomes. Here is a simple checklist for both movers and heirs.
Before you sell or buy with portability
- Get an estimate. Contact the Los Angeles County Assessor’s Office to understand how the portability calculation would apply to your expected sale price and target purchase price.
- Confirm eligibility. Gather age, disability, or disaster documentation if you plan to claim eligibility.
- Coordinate with escrow. Share your plan with your real estate agent and escrow so closing documents align with the filing timeline.
- Keep records. Save your property tax bill, recorded deed, purchase contract, and proof that both properties are or will be your primary residence.
If you inherit a home
- Notify the Assessor. Report the change in ownership right away and ask which forms apply under Prop 19.
- Decide on occupancy. If you plan to live in the home as your primary residence and claim the exclusion, prepare to document occupancy by the required deadline.
- Prepare documents. Expect to provide a death certificate, recorded deed or court documents, and proof of primary residence if you claim the exclusion.
- Plan finances. If the home will be reassessed, model the new property tax payment so you can plan whether to keep or sell.
Filing, forms, and deadlines
- Use the LA County Assessor forms for base year value transfers and for the parent child principal residence exclusion.
- File as soon as possible. Deadlines can affect your eligibility, and late filings can cause delays or denials.
- Ask questions. Assessor staff can explain formulas, timing, and required documents so your claim is complete the first time.
Who to involve
- Los Angeles County Assessor for estimates, forms, and filing requirements
- An estate attorney for inheritance and planning questions
- A CPA or tax advisor for income tax and cash flow planning
- Your real estate agent and escrow for transaction timing and documentation
Quick examples
Here are simple illustrations to show how Prop 19 typically works. Your exact result depends on county calculations and your facts.
Moving at age 62 from Pacific Palisades
You sell a long‑held Palisades home and buy a replacement home in California. Because you are 55 or older, you can transfer your base year value to the new home. The county adjusts the transferred amount based on the difference between the sale price and the purchase price. Even if the new home costs more, the transfer can still lower your tax bill versus a full reassessment.
Inheriting a Palisades family home
Your parent leaves you the house. If you move in and file the claim for the parent child principal residence exclusion, you may keep much of the lower taxable value up to the statutory cap, with any excess reassessed. If you do not occupy the home as your primary residence, the property is typically reassessed to market value.
Strategy tips for Palisades homeowners
- Model your numbers early. Ask the Assessor to walk you through a portability estimate before you list or write an offer.
- Align timing with documents. Make sure closing dates and recorded deeds match what the Assessor needs for your claim window.
- Clarify occupancy plans. If an heir will live in the home, prepare to prove primary residence by the deadline. If not, plan for new tax payments.
- Revisit estate plans. If your plan relied on prior parent child rules, speak with your attorney and tax advisor about updated options.
- Coordinate your team. Keep your agent, escrow, attorney, and CPA aligned so filings are accurate and on time.
Work with a local guide
Prop 19 can open doors if you want to move, and it can change the math if you plan to pass a home to family. On the Westside, where values are high, small filing details can have big dollar impacts. If you want help modeling your options, coordinating filings, or timing a sale and purchase, our team is here to guide you with clear steps and local know‑how.
Ready to explore your next move or value your home. Get started with the Jasan Sherman team today.
FAQs
How does Prop 19 portability help a 55+ Palisades seller
- It lets you transfer your lower taxable value to a replacement primary residence anywhere in California, subject to county procedures and limits.
What changed for parent to child transfers under Prop 19
- The exclusion now focuses on a family home that the child occupies as a primary residence, with a value cap, while most other inherited properties are reassessed.
Can I keep my parents’ low taxes if I rent out the inherited home
- Generally no, if you do not live in the home as your primary residence and file the claim, the property is typically reassessed to market value.
How many times can I transfer my base year value under Prop 19
- The number of transfers is limited, and special rules may apply for disaster victims, so confirm current limits with the Los Angeles County Assessor.
What should my family do first after a homeowner’s death in Los Angeles County
- Report the transfer to the Assessor, ask which Prop 19 forms apply, gather documents, and speak with an estate attorney and CPA about timing and tax planning.
