Thinking about moving but worried your property taxes will jump? If you own a home in Lakewood, Prop 19 may let you carry your lower assessed value to a new primary residence elsewhere in California. That can make a big difference in your monthly costs and what you can comfortably afford.
You want a clear, simple guide that explains who qualifies, how the math works, and how to file in Los Angeles County. This article breaks down the essentials, highlights common scenarios, and gives you a practical checklist to plan your move with confidence.
Let’s dive in.
Prop 19 overview
Prop 19, approved in 2020 and implemented in 2021, changed California property tax rules in three areas that matter to Lakewood homeowners:
- Expanded portability so certain homeowners can transfer their base-year value to a new primary residence anywhere in California.
- Narrowed the reassessment exclusion for certain transfers between parents, children, and qualifying grandparents and grandchildren.
- Adjusted funding allocations not covered here.
For many in Lakewood, the key is portability. If you qualify, you may move to a new primary residence in California and bring your current assessed value with you, which can lower the property tax amount on the new home compared with a full market reassessment.
Eligibility rules
You may be eligible to transfer your base-year value if you are:
- Age 55 or older.
- A severely disabled homeowner.
- A victim of wildfire or other natural disaster whose home was substantially damaged or destroyed.
Additional criteria to keep in mind:
- Your Lakewood property must be your principal residence to qualify for portability.
- The replacement property must be your new principal residence and located in California.
- Portability is statewide, not limited to certain counties.
- You may make multiple transfers. Many summaries note up to three transfers for the 55-plus or disabled group, while disaster rules can allow more. Confirm limits and exceptions with the Los Angeles County Assessor for your specific situation.
If you do not meet the age, disability, or disaster criteria, Prop 19 portability is not available.
Transfer calculation basics
The calculation is straightforward once you separate market value from assessed value.
- If your replacement home’s purchase price is equal to or less than your original home’s market value, your assessed value transfers without an upward adjustment.
- If your replacement home’s purchase price is greater than your original home’s market value, your new assessed value equals your old assessed value plus the price difference between the two properties’ market values.
Two simple examples:
- Example A, downsizing: Your Lakewood home’s market value is $700,000 and its assessed value is $250,000. You buy your replacement home for $500,000. Because the replacement price is lower than the old market value, your new assessed value remains $250,000.
- Example B, upsizing: Your home’s market value is $500,000 and its assessed value is $200,000. You buy a replacement home for $800,000. The difference is $300,000. Your new assessed value becomes $200,000 plus $300,000, or $500,000.
Important notes:
- Market value for these adjustments is generally the full cash value at the time of sale or purchase, determined by the assessor.
- Portability affects the base assessed value used for property taxes. Other charges like local assessments and special district levies still apply.
Timing and filing in LA County
Timing window:
- The replacement property can generally be purchased or newly constructed within a flexible window before or after selling your original home. Many homeowners plan within a two-year window, but you should confirm the exact look-back and look-forward periods with the Los Angeles County Assessor.
Filing a claim:
- You must file a formal claim with the assessor in the county where your replacement property is located. If you are staying in LA County, you will file with the Los Angeles County Assessor.
- Counties have deadlines for filing after you purchase or occupy your replacement home as a principal residence. Verify the current filing deadline and the correct claim form on the LA County Assessor’s website or by contacting the office directly.
Inter-county transfers:
- Portability applies statewide, so you can transfer from LA County to any other California county. The replacement county will coordinate records with the original county. Allow time for processing.
Escrow sequencing:
- Buying first, selling later: Establish the replacement home as your principal residence within the allowed timeframe and file your claim. Keep contracts, closing statements, and proof of occupancy.
- Selling first, buying later: Retain your sale documents, track dates, and file within the county’s deadline once you close on your replacement.
Documentation you may need:
- Proof of age, disability certification if applicable, or disaster documentation.
- Evidence of principal residence, such as a driver’s license, voter registration, and utility bills at the new address.
Common Lakewood move scenarios
Here is how Prop 19 often plays out for Lakewood homeowners planning a move within California.
Downsizing within California
- Likely outcome: Your assessed value transfers with no upward adjustment if the replacement price is lower than your old home’s market value. This can significantly reduce your new tax bill compared with full reassessment.
- Actions: Confirm principal residence status, gather documents, and file your claim on time.
Upsizing within California
- Likely outcome: Your old assessed value transfers and increases only by the positive difference between the two market values. You still get a substantial benefit compared with a full reassessment at the replacement price.
- Actions: Run the numbers before writing offers so you understand your estimated property taxes on the new home.
Moving closer to family in another county
- Likely outcome: If eligible, you can port your assessed value to any county in California as long as the replacement is your principal residence.
- Actions: Allow for inter-county processing time and confirm documentation requirements in both counties.
Buying first, selling later
- Likely outcome: Prop 19’s timing flexibility can fit this plan, but you must meet the deadlines and principal residence requirement.
- Actions: Coordinate with escrow, track occupancy dates, and file the claim within the allowed timeframe.
Leaving California
- Important limit: Portability does not apply to homes purchased outside California. Also note that Prop 19 narrowed the parent-child exclusion, so gifting a home that is not used as a principal residence can trigger reassessment.
Parent-child transfer changes
Prop 19 narrowed the reassessment exclusion for transfers between parents and children, and in some cases between grandparents and grandchildren. Today, the reassessment exclusion generally applies only when the transferred property becomes the child’s principal residence and the transfer meets the program’s dollar limits and conditions. These rules affect estate planning and gifting. If you are considering an intergenerational transfer, consult a tax professional and the county assessor to understand how the rules apply to your situation.
Practical checklist
Use this step-by-step list to plan your move and claim.
- Confirm eligibility
- Are you 55 or older, severely disabled, or a qualified disaster victim? If yes, you may be eligible for portability.
- Is your Lakewood property your principal residence, and will your replacement home be your principal residence? If yes, continue.
- Gather documents
- Current deed and property tax bill for your Lakewood home showing assessed value.
- Purchase contract and closing statements for the replacement home.
- Proof of age, disability, or disaster documentation if relevant.
- Proof of principal residence, including driver’s license, voter registration, and utility bills.
- Coordinate with professionals
- Contact the Los Angeles County Assessor to request the current Prop 19 claim form, filing instructions, and deadlines.
- Ask a CPA or property tax attorney to model the assessed-value impact for homes you are considering.
- Work with your Realtor and escrow to sequence the sale and purchase so you can document occupancy and meet filing deadlines.
- Estimate the tax impact
- Start with the simple framework: New assessed value equals your old assessed value, plus any positive difference between the replacement price and the old home’s market value.
- Remember that other charges like local assessments may still apply.
Risks and pitfalls to avoid
- Missing the filing deadline or not providing enough proof of principal residence can lead to a denied claim.
- Mixing up assessed value and market value can throw off your estimates. Double-check inputs before making offers.
- Assuming old parent-child rules still apply can lead to unexpected reassessments under the new Prop 19 limits.
- Prop 19 affects property taxes, not capital gains taxes on the sale of your home. Discuss income tax questions with a qualified tax professional.
Smart next steps
- Call or visit the Los Angeles County Assessor to confirm the current claim form, documentation requirements, and the filing deadline for your situation.
- Have a tax professional run calculations for specific replacement homes so you can budget with confidence.
- Share your timeline and portability plan with your Realtor and escrow early. Good coordination helps you meet deadlines and provide the right evidence on day one.
If you want local, step-by-step guidance on using Prop 19 to make your next move in Lakewood or nearby communities, reach out to Timothy Hoard. You will get neighborhood-focused advice and a plan tailored to your goals.
FAQs
What is Prop 19 tax portability for Lakewood owners?
- It allows eligible Lakewood homeowners to transfer their current assessed value to a replacement primary residence anywhere in California, which can lower property taxes compared with a full market reassessment.
Who qualifies for a base-year value transfer under Prop 19?
- Homeowners who are 55 or older, severely disabled, or victims of qualifying wildfires or natural disasters, provided the original and replacement homes are principal residences located in California.
How is the new assessed value calculated on the replacement home?
- If the replacement price is equal to or less than your old home’s market value, your assessed value transfers as is. If it is higher, add the price difference to your old assessed value to get the new assessed value.
What deadlines apply for filing a Prop 19 claim in Los Angeles County?
- You must file a claim with the Los Angeles County Assessor within the county’s required timeframe after purchase or occupancy of the replacement home. Confirm the current deadline and form directly with the Assessor.
Can I use Prop 19 portability if I move out of California?
- No. The replacement home must be in California and must be your principal residence to receive the portability benefit.
How did Prop 19 change parent-child property transfers?
- The exclusion from reassessment is now limited and typically requires the child to use the property as a principal residence and meet specific conditions and limits. Consult the assessor and a tax professional for details.
