Facebook
Twitter
Pinterest
Copy Link
In the ever-evolving landscape of real estate, staying informed about changes in property tax laws is crucial for realtors. As professionals guiding clients through the complexities of buying and selling properties, it’s imperative to be well-versed in the latest regulations, especially concerning property tax exemptions and the implications of Proposition 19.
Property Tax Exemptions and Reassessment in 2024
Property tax exemptions play a significant role in the real estate transaction process. These exemptions can provide significant savings for property owners, influencing their decisions on buying or selling properties. As of 2024, real estate professionals must understand the nuances of these exemptions to advise their clients accurately.
Proposition 19: A Game Changer
Proposition 19, which California voters passed in November 2020, has brought substantial changes to property tax laws affecting homeowners across the state. Its implementation has two primary facets:
Intergenerational Transfer Exclusions: Before Prop 19, Proposition 58 allowed parents and children (and, in limited cases, grandparents and grandchildren) to transfer property without triggering a reassessment, thus keeping the property tax low. Prop 19 has modified these rules significantly. Now, only the transfer of a principal residence qualifies for this exclusion, and even then, it is subject to conditions – the property must continue to be used as a principal residence by the inheritor, and the value exemption is capped at the property’s current assessed value plus $1 million.
Base Year Value Transfers: Prop 19 has expanded the ability for homeowners over 55, severely disabled, or victims of wildfires/natural disasters to transfer their tax assessment to a new property. This can now be done up to three times (previously only once), and it applies to any property within the state, regardless of its value compared to the original property.
These changes aim to provide more flexibility for senior, disabled, and disaster-affected homeowners while limiting the tax benefits for intergenerational property transfers, potentially leading to higher property taxes on inherited properties.
The 2024 Adjustments and Realtors’ Role
In 2023, the California State Board of Equalization adjusted the $1 million exclusion for intergenerational transfers to $1,022,600, acknowledging the need for periodic adjustments based on housing price indexes. This adjustment reflects the dynamic nature of the real estate market and the importance of Proposition 19 in maintaining fairness in property tax assessments.
For realtors looking to navigate these changes effectively, joining a team like Coldwell Banker Platinum Properties offers unparalleled support and guidance. Our team is dedicated to providing realtors with the latest information and strategies, ensuring that you can offer the best advice to your clients regarding property tax exemptions and the impacts of Proposition 19.
By partnering with us, you gain access to a wealth of resources, continuous education on the latest real estate laws and trends, and a supportive community that values professional growth and client satisfaction. Join Coldwell Banker Platinum Properties today and empower your real estate career with the right guidance and tools to thrive in 2024 and beyond.
Stay ahead in your real estate career by understanding and leveraging the changes brought by property tax exemptions and Proposition 19. For more insights and support, consider joining a forward-thinking team like Coldwell Banker Platinum Properties, where your growth is our priority.
