Thinking about right-sizing in Cardiff but worried your property taxes will jump? You are not alone. Many longtime coastal homeowners want less maintenance without losing the low tax basis they have enjoyed for years. In this guide, you will learn how California’s Proposition 19 can help you transfer your current taxable value to a new primary residence in Cardiff or anywhere in the state, and exactly how to file in San Diego County. Let’s dive in.
Prop 19 basics for Cardiff homeowners
Proposition 19, which took effect in 2021, lets eligible homeowners transfer their existing property tax base from one primary residence to another anywhere in California. The goal is to help you move without a large property tax increase. You can review the statewide framework in the California Secretary of State’s summary of Prop 19 and the California State Board of Equalization’s resources for property tax rules and forms. See the official voter guide summary for Prop 19 and the California State Board of Equalization.
In practice, this means you may sell your current primary home in Cardiff or Encinitas and buy a replacement primary residence anywhere in California while keeping your original taxable value, with adjustments if you buy a more expensive home.
Who qualifies to transfer your tax base
You qualify if you meet one of these conditions:
- Age 55 or older.
- Severely and permanently disabled. Documentation is required.
- Victim of a declared disaster or hazardous event. Rules vary based on the event.
The replacement property must be your primary residence, not a second home or rental. If there are multiple owners, each owner must meet eligibility rules for their share. The Board of Equalization and the San Diego County Assessor can clarify documentation standards.
When and how often you can transfer
- Transfer count: You can generally transfer your base year value up to three times in your lifetime if you qualify due to age or disability. Disaster-related transfers may have different rules.
- Timing window: Buy or build the replacement home within two years before or after you sell the original property. Keeping proof of dates and occupancy is key.
Confirm timing and any updates with the San Diego County Assessor before you close.
How your new taxable value is calculated
Your original taxable value moves with you. If your new home’s market value is higher than your old home’s market value, the difference is added to your transferred taxable value. If the replacement home’s market value is lower, your taxable value generally carries over.
Quick example (illustrative)
- Original home market value at sale: $1,200,000
- Original taxable value: $450,000
- Replacement home market value at purchase: $1,400,000
New taxable value = $450,000 + ($1,400,000 minus $1,200,000) = $650,000.
You still keep most of your original tax advantage. If you buy a less expensive home, the transferred amount usually remains the same without additional increases.
Filing in San Diego County: step-by-step
File your claim with the San Diego County Assessor, since Cardiff and Encinitas are in San Diego County. Start early to avoid delays and missed deadlines. Use the county’s main page to locate the current Prop 19 claim forms and instructions: San Diego County Assessor.
Here is a simple checklist to prepare:
- Document your sale and purchase. Keep closing statements and recorded deeds for both properties.
- Prove eligibility.
- Age 55+: driver’s license or other proof of birthdate.
- Disability: required medical documentation.
- Disaster: official disaster designation documents.
- Confirm primary residence. Update your driver’s license, voter registration, and utilities to the new address.
- Complete county claim forms. Use the current San Diego County forms for a base year value transfer under Prop 19.
- Submit promptly. File as soon as possible. The county has statutory time frames. If you think you missed one, contact the Assessor immediately.
What to expect after filing:
- Supplemental assessments. You may receive one-time supplemental tax bills based on timing between the old and new assessed values.
- Tax roll timing. It may take one or more billing cycles for the transfer to appear on your regular tax bill.
Parent-to-child changes to know
Prop 19 also narrowed parent-to-child and grandparent-to-grandchild exclusions. To avoid reassessment, the child must use the property as a principal residence, and the exclusion is limited in value. If the market value is above the allowed threshold, the excess can be reassessed. If your downsizing plan involves transferring a property to family, review the basics in the Secretary of State’s Prop 19 summary and the overview on Ballotpedia’s Prop 19 page, then confirm details with the San Diego County Assessor or a qualified property tax professional.
Local tips for Encinitas and Cardiff
- High market values. Coastal homes often sell at a premium. If you buy a pricier replacement home, expect an up-value increase in your taxable value equal to the price difference.
- Primary residence only. A Cardiff condo or Encinitas cottage qualifies only if it is your principal residence. Rentals and second homes do not qualify.
- Mello-Roos and special assessments. Your base year value transfer does not change neighborhood special assessments or bonds. Those items are separate from your Proposition 13 assessed value.
- Talk to the county early. San Diego County may update forms and checklists. Use the Assessor’s site for the latest steps.
Avoid common pitfalls
- Missing the two-year window. Track your sale and purchase dates closely.
- Not establishing primary residence. Update your records quickly to show you live in the replacement home.
- Assuming a rental qualifies. It must be your principal residence to transfer the base value.
- Incomplete documentation. Keep clear copies of deeds, closing statements, and eligibility proof.
- Overlooking intergenerational changes. Children who do not occupy a transferred home as a principal residence can face reassessment under Prop 19.
Your next move
If you are thinking about downsizing within Cardiff or moving elsewhere in California, map your sale and purchase timeline around Prop 19’s two-year window. Gather your documents, confirm eligibility, and contact the San Diego County Assessor for current forms. You can also review statewide background and updates through the California State Board of Equalization and the official Prop 19 voter guide.
When you are ready to explore your options, our boutique team helps you plan your move, price and prepare your current home, and identify the right replacement that fits your lifestyle and Prop 19 strategy. Book a complimentary consultation with Colucci & Co. Realty Group to get a clear, local game plan.
FAQs
What is Prop 19 and how does it help Cardiff downsizers?
- Prop 19 lets eligible homeowners transfer their current taxable value to a new primary residence anywhere in California, which helps you avoid a large tax increase when you move.
Who is eligible to transfer a property tax base under Prop 19?
- Homeowners who are age 55 or older, severely and permanently disabled, or victims of a declared disaster may qualify, and the replacement must be a principal residence.
How many times can I use a Prop 19 base value transfer?
- Most eligible owners can transfer up to three times. Disaster-related transfers may follow different rules, so verify with the county assessor.
What is the two-year timing rule for Prop 19 transfers?
- You must purchase or build your replacement home within two years before or after selling your original property, and you must file the claim with the county assessor.
How is the new assessed value calculated if my new home costs more?
- Your original taxable value transfers, then the difference between the new home’s market value and the old home’s market value is added to that transferred value.
Can I transfer my tax base to a rental or vacation property?
- No. The replacement must be your principal residence to qualify for a base year value transfer under Prop 19.
What changed for parent-to-child transfers under Prop 19?
- The child must occupy the property as a principal residence, and the exclusion has value limits. Without meeting these, the property can be reassessed at market value.
Where do I file my Prop 19 claim in Cardiff or Encinitas?
- File with the San Diego County Assessor, which provides current forms and instructions for base year value transfers.
