You Can Take It With You!

Did you know?

It’s pretty simple process to take your current property tax assessment with you when you change residences.  Click Here to watch a very informative video from the San Diego Assessor’s office.  We can also send you general brochure describing the process along with the application that you would fill out after you complete the purchase of your new residence and sale the sale of your old one.  Processing is slow, but the Assessor prorates the credits once completed.

Property taxes are based on a percentage of the assessed valuation (generally about 1.1% per year).  When you buy a new residence, it’s automatically initially re-assessed at the new purchase price.  But, thanks to Prop 19 (passed in 2020), people over 55 years of age can apply for exclusion of re-assessment if the new residence is purchased +/-2 years from sale of the old residence.  And you can do it up to three times in your lifetime, so don’t wait!

It used to be that the new residence had to be purchased for less than what you sold the old residence for.  But under the new Prop 19, only the increase (if any) is added to your old tax assessment.  For example:

• Current residence has an assessed value of $3.7m and you sell it for $5.6m. 
• You purchase a new residence for $6.0m.
• Only the increase of $400k ($6.0-5.6m) is added to the old assessed value of $3.7m so the assessed value of new residence will end up at only $4.1m not the $6.0m it otherwise would have been.

The "exclusion from reassessment" process is slow but predictable and not too complicated.  We’ve had a number of clients successfully get it done.  You can ask questions directly of the Assessor by calling them at (619) 531-5481 or email at [email protected]. 

Or better, let us know if you have any questions!