Prop 19 Explained For South Bay Homeowners

Thinking about moving in Almaden but worried your property taxes will jump? You are not alone. California’s Prop 19 changed how assessed values carry over when you move and how taxes work when property passes to your family. In this guide, you will learn what Prop 19 means for South Bay homeowners, how the numbers are calculated, and the simple steps to take next in Santa Clara County. Let’s dive in.

What Prop 19 changed

Prop 19 updated two big areas of California property tax law and kept a third:

• Expanded portability for some homeowners who move. If you are 55 or older, severely disabled, or a wildfire or disaster victim, you can transfer your lower Prop 13 base to a new primary home anywhere in California, up to three times.
• Narrowed inheritance exclusions. Most transfers to children now trigger reassessment unless the property becomes the child’s primary residence and specific rules are met.
• Preserved disaster relief. If your home was destroyed in a declared disaster, special rules can protect your base-year value on a replacement home.

Who benefits and who should plan ahead

Eligible movers in Santa Clara County

If you are 55+, severely disabled, or a wildfire or disaster victim, portability can reduce your annual tax bill when you buy a replacement primary home. In high-cost areas like Almaden and greater San Jose, even a partial carryover of your base can save thousands each year compared with a full market reassessment.

Heirs and owners of non‑primary property

If you inherit a home and do not occupy it as your primary residence, Prop 19 generally requires reassessment to current market value. That often means a much higher tax bill for South Bay rentals, vacation homes, or second homes that transfer to children. Planning ahead can help you decide whether to keep or sell.

How base‑year transfers work

If you qualify, you can transfer your assessed value from your current primary residence to your new primary residence. Here is the simple math the county uses at the time of your move:

• A = your current assessed value under Prop 13.
• OMV = market value of your original home when you sell.
• NMV = market value of your new home when you buy.

The replacement home’s assessed value becomes:

• If NMV is less than or equal to OMV: New assessed value = A.
• If NMV is greater than OMV: New assessed value = A + (NMV − OMV).

Hypothetical South Bay example

• Your current assessed value A is $300,000.
• Your original home’s market value OMV is $600,000.
• You buy in Almaden with a new market value NMV of $900,000.

Calculation: $300,000 + ($900,000 − $600,000) = $600,000 new assessed value.

Result: Your new assessed value is $600,000 instead of $900,000. In a county where tax rates apply to assessed value, this carryover can mean notable annual savings.

Inheritance rules after Prop 19

• The parent‑to‑child exclusion applies only when the heir uses the transferred home as a primary residence and files a claim. Value limits apply, and any excess over certain thresholds gets reassessed.
• Transfers of non‑primary property to children, such as rentals or vacation homes, are generally reassessed to market value at transfer.

In Santa Clara County, where market values are high, reassessment can significantly change the carrying cost. If you plan to keep an inherited home, build the new tax number into your budget before you decide.

Local impacts in Almaden and San Jose

• Assessed values matter more here. Many long‑time owners have low Prop 13 bases compared with today’s prices, so portability often delivers meaningful savings.
• Tax rates do not change under Prop 19. Local voter‑approved bonds, Mello‑Roos, parcel taxes, and special assessments still apply and are separate from the reassessment rules.
• Typical outcome for eligible movers. If you are moving within or into the South Bay, carrying your base can make a higher‑priced purchase more manageable.

What to do next: step‑by‑step

If you are 55+ or disabled and plan to move

1. Confirm you qualify as 55+, severely disabled, or a disaster victim.
2. Estimate savings. Compare your current assessed value with likely new home prices and run the simple formula above.
3. Time your move thoughtfully. Use conservative price estimates for South Bay homes to avoid surprises.
4. File your claim promptly with the Santa Clara County Assessor after you close on the replacement home.
5. If your move involves a trust or complex title, consult a CPA or real estate attorney.

If you expect to inherit a South Bay home

1. Decide if you will occupy the home as your primary residence. Only then may a parent‑to‑child exclusion apply, and even then with limits.
2. Contact the Santa Clara County Assessor quickly to learn what documents to submit and the timelines.
3. If you will not occupy the home, plan for reassessment to market value and a larger tax bill. Weigh the pros and cons of keeping or selling.
4. Seek tax and estate planning advice early, especially if multiple heirs are involved.

If you own investment property and want to transfer it to family

• Expect reassessment unless the heir uses the property as a primary residence and qualifies under the narrowed rules.
• Review the numbers before gifting or transferring. A future reassessment may affect cash flow and strategy.

Forms, deadlines, and appeals in Santa Clara County

• What to file. The Santa Clara County Assessor’s Office provides claim forms for base‑year transfers and for parent‑to‑child principal residence exclusions. You will likely need recorded deeds, proof of sale and purchase, proof of principal residence, and identification. Heirs typically need a death certificate.
• When to file. Submit claims as soon as possible and check the Assessor’s guidance for specific timelines.
• If you disagree with a new value. You can appeal through the Santa Clara County Assessment Appeals Board during the designated filing window.
• What Prop 19 does not change. Federal capital gains rules, estate taxes, and other local fees are separate from property tax reassessment.

Frequently used local resources

• Santa Clara County Assessor’s Office for forms, documentation lists, and filing steps.
• Santa Clara County Assessment Appeals Board for appeal procedures and deadlines.
• California State Board of Equalization for statewide Prop 19 guidance.
• California Legislative Analyst’s Office for background and voter guide analysis.
• Trusted tax and legal professionals for advice on trusts, estates, and complex ownership.

Plan your move or inheritance with confidence

Prop 19 can unlock a move that once felt out of reach, or it can change the math on an inherited home. With clear steps and the right local support, you can protect your budget and make a confident decision in Almaden, San Jose, and across Santa Clara County. If you want help estimating your numbers or planning the timing of a sale or purchase, reach out to Elsa Garza. Bilingual service in English and Spanish is available.

FAQs

How does Prop 19 help a 55+ homeowner moving within San Jose?

• If you qualify, you can transfer your lower assessed value to your new primary home, which can reduce your annual property tax compared with a full market reassessment.

What happens if my new home costs more than my old one?

• Your new assessed value equals your old assessed value plus the difference between the new home’s market value and the old home’s market value at the time of transfer.

Does Prop 19 change my property tax rate in Santa Clara County?

• No. Prop 19 affects assessed values, not tax rates, and does not change voter‑approved bonds, Mello‑Roos, parcel taxes, or special assessments.

Can children keep a parent’s low tax base on a rental or vacation home?

• Generally no. Under Prop 19, non‑primary residences transferred to children are reassessed to market value when transferred.

What must heirs do to claim the parent‑to‑child exclusion on a home they will occupy?

• File the required claim with the Santa Clara County Assessor and provide proof the property is your primary residence, along with other documentation and deadlines the county requires.

How many times can I use base‑year value transfer benefits under Prop 19?

• Up to three times for eligible homeowners, with additional options available in some disaster situations.