How Prop 19 Helps Seniors Save on Property Taxes In SLO When They Move
Thinking about downsizing or relocating in retirement? Proposition 19 could save you thousands in property taxes, especially here on the Central Coast.
Prop 19, passed in 2020, introduced significant updates to California property tax rules, particularly benefiting homeowners over 55, people with disabilities, and victims of natural disasters. If you’re considering a move within California, this law allows you to carry over your existing tax base to your next home, even in high-demand communities like Pismo Beach, Arroyo Grande, and San Luis Obispo.
Key Benefits of how Prop 19 helps Seniors Save on Property Taxes In SLO when they Move:
- Keep your low property tax base when you move
- Move anywhere in California, even to more expensive areas
- Transfer your base value up to three times
- Helps retirees manage fixed-income budgets
What Is a Property Tax Base Transfer?
In California, a home’s property tax base is tied to its original purchase price. Thanks to Proposition 13, the base increases slowly over time.
Eligible homeowners can now transfer that base to a new primary residence anywhere in California under Prop 19.
This includes:
- Seniors aged 55 and up
- Individuals with severe disabilities
- Homeowners impacted by wildfire or natural disasters
How Prop 19 Works for Homebuyers in San Luis Obispo
- If your new home is equal to or less than the price of the home you sold, your property tax base stays the same.
- If your new home is more expensive, you only pay tax on the difference between your old and new home values—added to your existing base.
Example:
Original assessed value: $400,000
New home purchase price: $1.5 million
Your new tax value = $400,000
Since your new home costs less than your old one, your tax base remains unchanged.
Result: You pay taxes on $400,000 instead of $1.5 million.
San Luis Obispo Case Study: Real Savings with Proposition 19
A retired couple from San Luis Obispo sold their longtime home for $2 million, which had an assessed value of $400,000. They purchased a smaller home in Pismo Beach for $1.5 million.
Without Prop 19: Taxes ≈ $18,000/year
With Prop 19: Taxes ≈ $4,800/year
Annual savings: $13,200
To qualify for the tax transfer:
- Be 55 years or older, severely disabled, or a disaster victim
- Sell your primary residence
- Buy a replacement home in California within 2 years
- File the proper forms with your County Assessor’s Office
Timing matters: You have 2 years from the sale of your original home to purchase the new one.
Filing deadline: Submit your application within 3 years to ensure it’s accepted.
Where to File in San Luis Obispo County
Submit your Prop 19 application to:
San Luis Obispo County Assessor’s Office
Visit their website or call ahead for updated forms and instructions.
Helpful Tools
San Luis Obispo County Assessor Website: https://www.slocounty.ca.gov
Prop 19 Calculator: https://wfgtitle.com/prop-19-calculator/
Why Prop 19 Matters for SLO Retirees
San Luis Obispo County offers retirees a range of options, from walkable beach towns to serene wine country retreats. Whether you’re moving to a luxury condo in Avila Beach, a smaller home in Los Osos, or a peaceful property in Paso Robles, Proposition 19 can make that move more affordable.
This law helps preserve wealth, improve quality of life, and reduce stress during one of life’s most significant transitions.
Ready to Make Your Move?
Hello, I’m Wina Gill, your trusted guide to real estate success in SLO County.
If you’re exploring how Prop 19 could apply to your move, I’d love to help you evaluate your options and plan your next chapter with confidence.
Call or text me anytime: 805-550-0161
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