Early returns show Proposition 19 leading 51.54% to 48.46% as of 7 a.m. Wednesday morning. If the measure maintains its lead, it would expand property tax savings for older Californians who are looking to downsize to a new home — and bring their lower property tax rates with them.
Proposition 19’s passage would also end an inheritance tax loophole that could increase tax revenue by tens of millions of dollars. A large percentage of that is expected to go to a dedicated wildfire fund.
The measure would allow empty nesters to downsize without incurring a huge tax increase. Homeowners who are 55 and older could buy a more expensive property anywhere in the state and bring along their lower property tax rate from their old home, and blend it with their new home value to reduce their tax payments.
Proposition 19 is expected to spur an uptick in home sales, which is why the campaign has been heavily funded by the real estate industry, with more than $40 million coming from the California Association of Realtors. Supporters argued expanding tax breaks would encourage more home sales and free up inventory in a state with a severe housing shortage.
“We are optimistic that when all the votes are counted, California seniors, disabled homeowners and wildfire victims will get much-needed housing and tax relief, while delivering constitutionally protected funding for firefighters, local schools, cities and counties,” said Becky Warren, a spokesperson for the Yes on 19 campaign.
— Molly Solomon (@solomonout)
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