Business Lawyers Blog
Prop 19 is now effective in California. The new law makes changes to existing property tax laws, so it is important for homeowners to understand how their tax obligations can change under the new rules. Business owners must also be prepared for changes to property tax assessments on corporate real estate holdings. Learn more about the changes to state property tax laws, what business owners need to do to prepare for these changes, and how a California corporate attorney can help you determine the best way to manage real estate assets held by your business. With advanced planning, your business will be prepared to meet its tax obligations without compromising its financial goals.
What Is Prop 19?
According to the Office of the San Francisco Assessor-Recorder, Prop 19 makes changes to certain state property tax benefits. The law is an amendment to the state constitution that limits certain property tax benefits to make them available to others who need them. For example, this amendment requires an owner who inherits family property to use the home as a primary residence in order to retain the lower property value assessment for tax purposes. On the other hand, a homeowner who is over 55 years of age, disabled, or the victim of a wildfire or natural disaster may transfer a low property tax base on a replacement residence up to three times. These amendments have large impacts on families, especially in the bay area where the value of homes have increased significantly for many individuals who are now looking to pass the property on to their children.