What to know about Proposition 19

Proposition 19 is all about property taxes. If passed, some transfers will mean higher taxes, and for others - lower. The money generated largely goes to a new fire response fund.

Currently, eligible homeowners are limited with how they can move and keep their current tax assessment - meaning the same lower property tax.
For people over the age of 55 or severe disabilities, they must move to a home of equal or lesser market value and they can only do so once.

"There are some geographic and age limits on that transfer -- for example, you can't transfer within the same county.. or to another county if it is one of the 11 counties that has what's called a reciprocity agreement," say Jon Coupal, president of the Howard Jarvis Taxpayers Association President -

Proposition 19 will expand the ability for certain homeowners to keep their old, lower taxes. If someone over 55, has a severe disability or is a victim of a wildfire or natural disaster, they can move to any county up to 3 times as long as the home is of equal or lesser value and it is their primary residence.

However, the more controversial part of prop 19 has to do with family transfers.

Current law allows property transferred from parent to child or grandparent to grandchild while keeping the same tax assessment.

The Howard Jarvis Taxpayers Association is one of the biggest supporters of "NO on 19."

"If some parents want to transfer a home to their kid and their kid doesn't ant to move back to the family home but they want to use it as a rental property to help their kid to gain financial footing in this environment, there's nothing wrong with that," says Coupal.

They are against what a 'YES on 19" would mean: Inherited homes than are still used as primary residences will keep their lower assessment. But, if that property is used as a second home, rentals, or other way, it will be re-assessed at market value when transferred.

Supporters say this closes a loophole taken advantage of by out-of-state residents and the wealthy. With both aspects of the law intended to increase home sales, and therefore, available homes… along with more money for communities.

"Proposition 19 is one of those rare win-wins for Californians. Every Californian in this state - no mater where you live -- will end up seeing a benefit for proposition 19 because we will be getting more funding in our local communities," says Becky Warren, the spokesperson "YES on 19."

Overall, this is expected to lead to more people paying more taxes.

A big push in the 'YES on 19' effort is where the money generated is promised to go.

"Under Prop 19 it will go back to the community, but it will also go towards this new fire fund, which i think everyone can agree -- we definitely need more fire emergency response funding," says Warren.

Those against the new law say this is just a tax increase.

"Californians are over-taxed, we do not need another tax increase in the form of taking away this intergenerational transfer protection," says Coupal.

Meanwhile, proponents say otherwise.

"This is not a tax increase… this is closing a tax loophole that has been exploited… and reports show that it's often times exploited by those out of state residents and the wealthy and that our fire districts and communities deserve and need this additional funding," says Warren.

Look for Prop 19 on this year's election ballot.