Thinking about downsizing in La Jolla but worried your property taxes will jump? You are not alone. For many longtime owners, a bigger tax bill is the main thing holding back a move. The good news is that California’s Proposition 19 can help you carry your low taxable value to a new primary home in the state, which may lower your ongoing costs. In this guide, you’ll learn how Prop 19 works, who qualifies, how to file, and what it means for common La Jolla scenarios. Let’s dive in.
What Prop 19 changed
Prop 19 changed how certain homeowners can move their property tax base within California. If you meet the eligibility rules, you can transfer your Proposition 13 taxable value from your current primary home to a replacement primary home anywhere in the state. This portability was expanded under Prop 19, which is why it is now central to many downsizing plans.
The law also narrowed parent-to-child and grandparent-to-grandchild exclusions. In most cases, children now keep a parent’s taxable value on a family home only if they make it their own principal residence. Second homes and rental properties left to children are generally reassessed to market value. County assessors administer the process and provide claim forms and instructions.
Who qualifies in La Jolla
You may be eligible for property tax base transfer under Prop 19 if you are:
- Age 55 or older.
- A severely disabled homeowner.
- A homeowner whose home was substantially damaged or destroyed by wildfire or another declared disaster.
To use portability, the replacement property must be your principal residence. The transfer applies within California only. County assessors manage claims and will verify your eligibility and documentation.
How a base-year transfer works
The basic idea is simple. Your Proposition 13 taxable value, often far below today’s market value, can move with you to a new primary residence in California. Your new taxable value depends on how the price of your next home compares to the market value of your current home at the time of transfer.
If the replacement is equal or lower in value
If your replacement home’s market value is less than or equal to your original home’s market value, your original taxable value generally transfers without an upward adjustment. This is why downsizing within La Jolla to a lower-priced home can be very powerful for long-term savings.
If the replacement is more expensive
If your replacement home’s market value is higher, the new taxable value equals your original taxable value plus the difference in market value between the two homes.
- New taxable value = Original taxable value + (Replacement market value − Original market value).
Example, illustrative only:
- Original La Jolla home: market value $2,000,000; current taxable value $250,000.
- Replacement home: market value $3,000,000.
- New taxable value = $250,000 + ($3,000,000 − $2,000,000) = $1,250,000.
- Estimated base tax is about 1 percent of the taxable value, so roughly $12,500 per year before adding special assessments. Actual values vary by property and district.
Local special assessments and voter-approved charges still apply and will be added to your bill. The base 1 percent tax rate is applied to the transferred taxable value after any required adjustment.
Timing and filing with the county assessor
You must file a claim with the county assessor to transfer your taxable value. Counties advise filing as soon as possible after you buy your replacement home. Many counties allow a multi-year window to submit claims, commonly up to three years, but local rules vary. Filing early helps avoid missed deadlines.
Typical documents include:
- Proof of sale or transfer for both properties and recorded deeds.
- Proof that the original property was your principal residence.
- Proof of eligibility, such as age 55 or older, disability, or disaster documentation.
- The county’s claim form for base-year value transfer.
- Any other items the assessor requests for your file.
Coordinate with your real estate agent and escrow so the claim fits your closing timeline. Many owners ask escrow or title to flag the transfer for the assessor at closing.
What Prop 19 means for La Jolla downsizers
La Jolla is a high-value coastal market. Many owners have a low Prop 13 tax base on homes that have appreciated for years. Preserving that lower taxable value, even with an adjustment, can deliver meaningful annual savings versus a full reassessment at your next home’s market price.
Here is how that plays out in common local scenarios:
- Downsizing within La Jolla to a lower-priced home or condo. You may be able to transfer your taxable value without an increase, which can keep your annual taxes low while you stay near the coast.
- Moving to an equally priced or more expensive home in San Diego County or another California market. The taxable value increases by the price difference between the two homes. This can still be a benefit versus a full reset at the new home’s value.
- Moving out of California. Portability does not apply out of state. If you return to California later, your prior base-year value does not automatically come back.
- Accounting for special assessments. Many properties include Mello-Roos, community facilities districts, or parcel taxes. These remain payable even with a transferred base and should be part of your budget and property comparisons.
The net effect is improved purchasing power compared with a full reassessment, but the size of the benefit depends on prices at both ends. Run side-by-side comparisons before you make an offer so you understand the long-term carrying costs.
Parent-to-child changes you should know
Prop 19 narrowed the prior parent-to-child and grandparent-to-grandchild exclusions. Today, a child may keep a parent’s taxable value only when the transferred home is used as the child’s principal residence. Depending on assessed and market values, partial adjustments can apply under current rules. Transfers of second homes or rental properties to children are generally reassessed to market value.
This is important in La Jolla, where families often own second homes or investment properties. If your goal is to preserve a lower tax base for the next generation, you should plan ahead. Talk with the county assessor and an estate planning attorney to understand what is possible and whether a sale, a different timing, or another strategy better aligns with your goals.
A step-by-step plan for your move
Use this checklist to make your Prop 19 move smooth and timely:
- Confirm eligibility. Make sure you qualify as age 55 or older, severely disabled, or a disaster victim, and that the replacement home will be your principal residence.
- Map your numbers. Compare the market values of your current and target homes to estimate the new taxable value and annual tax bill, including any special assessments.
- Gather documents. Collect deeds, closing statements, proof of primary residence, and proof of eligibility. Keep them organized for your claim.
- Contact the San Diego County Assessor early. Review the county claim form and required documents so you can file soon after closing.
- Coordinate with your team. Ask your agent and escrow to track filing steps and assessor notifications during closing.
- Plan for assessments. Request a breakdown of Mello-Roos and parcel taxes on any home you are considering. Add them to your annual cost comparison.
- File promptly. Counties often allow up to three years to file, but earlier is better to reduce administrative risk.
Common pitfalls to avoid
- Assuming portability applies out of state. It only applies within California.
- Assuming a child can keep your low tax base on a second home. Most non-principal residence transfers to children are reassessed.
- Waiting too long to file. File as soon as you can after the replacement purchase to avoid missing windows.
- Ignoring special assessments. They can add a meaningful amount to your total tax bill.
Make your move with confidence
A thoughtful Prop 19 plan can give you more freedom to right-size your lifestyle without a surprise tax burden. Start with eligibility, run your numbers, and get your filing steps lined up before you go under contract. Then you can focus on choosing the home that fits your next chapter.
If you want help modeling scenarios, comparing neighborhoods, and coordinating your filing timeline with escrow, reach out to the local team that treats strategy and service with equal care. Start your San Diego home plan with San Diego's Favorite Team.
FAQs
Who is eligible for a Prop 19 base transfer in California?
- Homeowners age 55 or older, severely disabled homeowners, and disaster victims who will make the replacement property their principal residence.
Can I transfer my La Jolla tax base anywhere in California?
- Yes. Prop 19 portability allows transfers between any counties in California when eligibility rules are met.
How is my new taxable value calculated if I buy a more expensive home?
- Your original taxable value is added to the difference between the replacement home’s market value and your original home’s market value.
Does Prop 19 help if I downsize to a lower-priced condo in La Jolla?
- Often yes. If the replacement home’s market value is equal to or lower than your original home’s, your taxable value typically transfers without an increase.
How long do I have to file my Prop 19 claim with the county assessor?
- Counties advise filing as soon as possible; many allow a multi-year window, commonly up to three years, but local rules vary. Filing early is safer.
Will my child keep my low La Jolla tax base when inheriting my home?
- Generally only if the child uses the home as their principal residence. Most transfers of second homes or rentals to children trigger reassessment.
Do special assessments go away when I transfer my base value?
- No. Special assessments, such as Mello-Roos and parcel taxes, still apply and should be included in your annual cost planning.
Can I transfer my base value if I move out of California and later return?
- No. Portability applies only within California at the time of the qualifying purchase or transfer by an eligible owner.
