The recent passage of Proposition 19, together with its accelerated effective date, will have a dramatic impact on property tax planning for parents and children. Homeowners who wish to transfer their primary or vacation homes with a low taxable value to their children will no longer enjoy exclusion from property tax reassessment. (Proposition 19 uses the term 'taxable value' for what otherwise may be referred to as 'assessed value' or 'base year value as adjusted.')

Proposition 19 also eliminates the $1 million parent child exclusion from property tax reassessment on other real property transferred between generations. The proposition applies to transfers of residences occurring on or after Feb. 15, 2021.