If you are a San Francisco homeowner considering a move within California, you may be eligible to submit a Prop 19 application to transfer your current property tax base to your new home. However, recent data shows that a substantial 44% of Prop 19 applications are being denied statewide.
In this post, we'll explore the reasons behind these rejections and provide tips on how you can avoid making mistakes when applying for Prop 19 benefits.
Proposition 19, which went into effect on April 1, 2021, allows eligible homeowners to transfer their Prop 13 tax base to a new home anywhere in California, up to three times. This can result in significant property tax savings when moving, especially for those who have owned their homes for many years.
To be eligible for Prop 19, you must be:
Those are the basics, but it can get a bit more complicated. Learn more on our post about Prop 19: Saving on Property Taxes When Moving in California.
In a recent article by The Orange County Register, author and mortgage expert Jeff Lazerson explains that only 56% of Prop. 19 property tax transfer applications approved statewide. Of course, that means a majority of Proposition 19 applications are being approved, but the fact that 44% of applications are denied was surprising to us.
According to Maria Melchor, Tax Advocate at the Orange County Assessors office interviewed in the article, the main reasons for Prop 19 application denials are:
As explained by the author:
“Not being a main residence is probably a polite way to say many applicants are lying and trying to game the system. If you are not living on the property or planning on living there within the first year, then don’t apply.
These tax transfer transactions are tracked by your Social Security number. In other words: No double-dipping (trying to claim two primary residences) for the base year value transfer. You will get caught.”
So before you make your next move, make sure you’ve checked all the right boxes! You must be living in the property or planning to make it your primary residence within the first year of ownership to qualify for Prop 19 benefits.
When you’re ready to list your San Francisco home for sale, there are many strategies in addition to Prop 19 which you can use to maximize your outcome. Read more in our articles about:
🏡 A Prop 19 Guide to Downsize Your San Francisco Home
🏘️ How to sell your home without moving out or staging it first
❄️ Best Time to Sell a Home in SF? Try Winter, Not Spring
🔄 How to Sell Your Current Home and Buy Another Back-to-Back
If this seems like a lot, don’t worry. As top SF Realtors since 2002, our team of the best San Francisco listing agents will guide you through the whole process, helping you maximize your sale price—and property tax savings—while ensuring a smooth transition to your new home.
That said, a small disclaimer is in order: At Danielle Lazier & Vivre Real Estate, we are a boutique collective of top-performing San Francisco real estate agents, marketing professionals, and transaction experts who specialize in each aspect of the real estate buying and selling process. However, we are NOT tax or legal professionals! Always consult with a qualified lawyer or accountant before you take the plunge.
For more information on how Prop 19 can benefit you as a San Francisco homeowner, explore our resources for sellers and buyers. Plus, discover the unique charm of San Francisco's neighborhoods and browse current listings in the area.
We hope this information helps you to navigate the complexities of Prop 19 and achieve your real estate goals. When you’re ready to make your next move, we’re here to help! At no obligation, let’s schedule an initial consultation over Zoom to see if we’re a good fit to help reach your real estate goals in San Francisco. Contact us today.
