Worried that downsizing will wipe out the low property taxes you have earned over decades in San Marino? You are not alone. Many longtime owners want a simpler home but fear a big tax jump. The good news is that California’s Prop 19 may let you move and keep a lower taxable value. In this guide, you will learn what Prop 19 is, who qualifies, how the math works, and the steps to use it, with examples tailored for San Marino. Let’s dive in.
What Prop 19 means
Prop 19 lets eligible homeowners transfer the taxable, or base‑year, value of their primary residence to a replacement primary residence anywhere in California. It took effect in early 2021 and was designed to help you move without losing the property‑tax benefit you built over many years.
This transfer applies only to a primary residence. It does not apply to second homes or rental properties. Timing matters too. You must buy or build the replacement home within a set period around the sale of your original home, commonly within two years before or after, and you should confirm exact rules with the county assessor.
If your replacement home costs more than your original home’s market value at sale, your transferred base value is adjusted up by the price difference. If your replacement costs less, you generally carry your lower base value over.
Who qualifies and when
You may qualify if any of the following apply:
- You are age 55 or older.
- You are a severely disabled homeowner as defined by the assessor.
- Your original primary residence was substantially damaged or destroyed by wildfire or another declared disaster.
To use the transfer, the home you sell must be your principal residence at the time of transfer. Be prepared to show proof such as a driver’s license, voter registration, or utility bills.
You can move anywhere in California and still use the transfer. Most moves by San Marino downsizers involve Los Angeles County, but you can also go to coastal counties, desert communities, or Northern California and still apply.
Prop 19 can be used more than once, subject to a statutory limit and special disaster rules. Because procedures have evolved since implementation, check the current limit and any exceptions with the county assessor before you plan multiple transfers.
How the tax math works
The county applies your transferred base‑year value to your replacement home. The calculation depends on the price relationship between the home you sell and the one you buy.
- If the replacement home’s market value is higher than your original home’s market value at sale, your new taxable value is your transferred base value plus the difference between the two market values.
- If the replacement home’s market value is lower, your transferred base value generally carries over without an upward adjustment.
Because San Marino homes often have low legacy assessments compared with current market values, running the numbers can be meaningful. The right move can reduce your ongoing property taxes compared with a new full reassessment.
San Marino downsizing examples
Example A: Downsize locally at a lower price
Imagine you sell a long‑owned San Marino home with an assessed value of $300,000 and a market value of $3,000,000. You buy a smaller home in San Marino or South Pasadena for $2,000,000. Because the replacement home costs less than the one you sold, your lower base‑year value can carry over, which can mean property taxes well below what a new $2,000,000 purchase would normally trigger.
Example B: Buy a more expensive home elsewhere
You sell in San Marino at a market value of $3,000,000 and buy in a higher‑priced area for $4,500,000. Your base value transfers, then increases by the $1,500,000 difference. Your assessed value will be higher than it was before, but often lower than a full reassessment to $4,500,000.
Example C: Move to another county in California
You sell in San Marino and buy in a different county, such as Palm Springs or Northern California. Prop 19 portability is statewide. You file your claim with the destination county assessor and coordinate documentation from Los Angeles County as needed.
Step‑by‑step: How to use Prop 19
Follow this simple process to keep your timeline and paperwork on track:
- Start early with the assessor
- Contact the destination county assessor’s office as soon as you go under contract. If both homes are in Los Angeles County, work with the Los Angeles County Assessor. Each county provides claim forms and instructions.
- Confirm your timing window
- Plan your sale and purchase or new construction within the required period. The common guidance is within two years before or after, but confirm what your county will accept and which dates they use.
- Gather your documents
- Proof of age or disability, such as a driver’s license or required certification.
- Proof that the original home was your principal residence, like utility bills, voter registration, or tax returns.
- Escrow closing statements or recorded deeds for both sale and purchase. If you built a new home, include permits and proof of completion.
- Any disaster documentation if applicable.
- File your claim promptly
- File the claim with the assessor in the county of your replacement home. Submit complete documents to avoid delays. Keep copies of everything and track your submission date.
- Coordinate with escrow and advisors
- Ask your escrow officer to help collect final settlement statements and recorded documents. Your real estate agent and tax advisor can help you plan the sequence of dates and confirm the financial impact.
Planning tips and red flags
- Align your closings. If you buy first and sell later, you must still meet the allowable window, so document dates carefully. If you sell first, set reminders to complete your purchase within the window.
- Expect local tax differences. Prop 19 affects assessed value, not the tax rate. Local rates, special assessments, and parcel taxes vary by community, even within Los Angeles County. Compare your estimated total property tax, not just the assessed value.
- Separate downsizing from inheritance planning. Prop 19 narrowed many parent‑to‑child and grandparent‑to‑grandchild exclusions. If legacy planning is a goal, review the rules with a qualified advisor.
- Run the numbers. If you plan to buy at a much higher price, the upward adjustment could increase your taxes. Weigh that against the benefits of downsizing, such as lower maintenance and possible cash from your sale.
- Know your appeal options. If you disagree with the assessor’s valuation or adjustment, counties have formal appeal processes.
Your move, made simpler
If you have lived in your San Marino home for years, the decision to right‑size is about more than math. It is about timing, comfort, and getting from point A to point B with less stress. That is where the right team makes a difference.
Our process is built for downsizers. You get a clear market plan plus hands‑on coordination for decluttering, staging, packing, and moving. We help you identify suitable replacement homes, line up trusted vendors, and synchronize the Prop 19 claim timeline with escrow so the paperwork is not an afterthought.
Ready to explore your options with a calm, step‑by‑step plan? Connect with JOELLE CONZONIRE GROSSI to discuss your goals and map out a smooth, low‑stress move.
FAQs
What is Prop 19 property‑tax portability in California?
- Prop 19 lets eligible homeowners transfer the taxable base‑year value of a primary residence to a replacement primary residence anywhere in California, subject to timing and documentation rules.
Who is eligible for a Prop 19 base‑year transfer?
- Homeowners age 55 or older, severely disabled homeowners, and homeowners whose principal residence was damaged or destroyed in a declared disaster may qualify if other requirements are met.
Does my replacement home have to be in Los Angeles County?
- No. Prop 19 is statewide, so you can move from San Marino to any California county and still file the claim with the destination county assessor.
How many times can I use Prop 19 as a downsizer?
- The transfer may be used more than once, but there is a statutory limit and some exceptions for disasters, so confirm current limits with your county assessor before planning multiple moves.
What if my replacement home costs more than the home I sold?
- Your transferred base value is increased by the difference between the replacement home’s market value and the original home’s market value at sale, which still may result in a lower assessment than a full reassessment.
What if my replacement home costs less than my original home?
- Your lower base‑year value generally carries over without an upward adjustment, subject to the county’s calculation rules and documentation.
What documents do I need to file a Prop 19 claim?
- Typical items include proof of age or disability, proof of principal residence on the original home, escrow statements or recorded deeds for the sale and purchase, and any disaster documentation if applicable.
Does Prop 19 affect inherited property or family transfers?
- No. Prop 19 narrowed prior parent‑to‑child and grandparent‑to‑grandchild exclusions, so inherited properties are separate from the portability benefit and should be reviewed with a qualified advisor.
Do local assessments and parcel taxes still apply after a transfer?
- Yes. Prop 19 affects your assessed value, but local tax rates, special assessments, and parcel taxes still apply and can vary by community.
When should I start the Prop 19 process for a San Marino move?
- Contact the destination county assessor early in escrow, confirm timing requirements, and gather documents so you can file your claim promptly at or soon after closing.
