Can Simi Valley Move-Up Sellers Keep Their Low Property Tax Base? (Prop 19 Explained)
Can Move-Up Sellers Keep Their Low Property Tax Base Under Prop 19?
Quick answer: Yes, if you're 55 or older, disabled, or a wildfire/disaster victim. California's Prop 19 lets you transfer your current property tax base to a new home, even a more expensive one, up to three times in your lifetime. It won't erase the tax increase entirely if you're moving up in price, but it can save you thousands a year compared to paying tax on the full new purchase price.
If you've owned your Simi Valley home a long time, this is one of the most overlooked tools for making a move-up affordable.
What is Prop 19, in plain terms?
California caps how much your property's assessed value can go up each year, thanks to Prop 13. If you've owned your home for 10, 20, or 30 years, your assessed value is probably far below what your home is actually worth today. That gap is where your low tax bill comes from.
Normally, that low assessed value disappears the moment you sell and buy a new home. Prop 19 changes that. If you qualify, you can carry your old, lower assessed value over to your new home instead of starting over at full market value.
Do I qualify?
You qualify if you're 55 or older, severely disabled, or a victim of a wildfire or other declared disaster. Only one spouse or co-owner needs to meet the age requirement if you own the home together.
A few rules to know: you must be 55 or older when you sell your original home. Your age when you buy the replacement home doesn't matter. The sale of your old home and the purchase of your new one need to happen within two years of each other, and it doesn't matter which one happens first. Your original home needs to have been your primary residence, and the new home needs to become your primary residence too.
What if my new home costs more than my old one?
This is the part that trips people up, and it's exactly your situation as a move-up seller.
If your new home costs the same or less than your old one, your entire old tax base transfers over with no adjustment. If your new home costs more, which is likely if you're moving up, you don't get to keep your exact old bill. Instead, the difference between your old home's value and your new home's value gets added on top of your old assessed value. You still come out ahead of paying tax on the full purchase price, just not as far ahead as a lateral or downsizing move.
What does this look like in real numbers?
Here's an illustrative example, not a quote for your specific home. Say you bought your Simi Valley home years ago and your current assessed value, thanks to Prop 13's cap, is around $280,000. Your home is now worth $850,000 on today's market. You buy a new home for $1,000,000.
The gap between your old home's market value and your new home's price is $150,000. Under Prop 19, that $150,000 gets added to your $280,000 base, making your new assessed value roughly $430,000, instead of the full $1,000,000 purchase price.
At Simi Valley's typical effective tax rate of roughly 1.1% to 1.35%, that's the difference between paying somewhere around $5,000 a year versus $12,000 a year. Your actual numbers will depend on your specific assessed value, sale price, and purchase price. This is where a call with the assessor's office, or a quick conversation with me, pays off.
How many times can I use this?
Up to three times in your lifetime, and the replacement home can be anywhere in California, not just Ventura County. That means if a future move takes you outside Simi Valley, this benefit can travel with you.
What do I actually need to do?
In Ventura County, you'll file form BOE-19-B with the County Assessor's office. Filing within three years of your transfer gets you relief back to the date of the transfer, so there's some room, but it's smart not to wait. The Ventura County Assessor's office can walk you through the specifics, and a tax professional can confirm how it applies to your situation.
What should homeowners watch for?
Timing matters. Since the sale and purchase need to fall within two years of each other, it's worth mapping out your move-up plan before you list, not after. If you're not sure you'll qualify, it's worth checking with the Assessor's office or a tax professional early, not after you've already closed on a new home.
FAQ
Do both spouses need to be 55 or older to qualify? No. If you co-own the home, only one owner needs to meet the age requirement.
Does my age when I buy the new home matter? No. You just need to be 55 or older at the time you sell your original home.
Can I use Prop 19 if I'm moving outside Ventura County? Yes. The replacement home can be anywhere in California.
What if my new home is much more expensive than my old one? You'll still see some tax increase, since the value difference is added to your old base. But it's typically far less than paying tax on the full new purchase price.
How many times can I transfer my tax base under Prop 19? Up to three times in your lifetime.
Is this the same as the old Prop 60/90 rules? No. Prop 19 replaced those rules in 2021 and expanded them, allowing transfers statewide instead of only between certain counties.
Want to see what this could mean for your move?
Every situation is different, and your exact numbers depend on your home's assessed value and your next purchase price. If you're thinking about moving up in Simi Valley and want to talk through what Prop 19 could mean for you, let's get on a call.
Steve Hise eXp Realty Realestatetoolbox.com Book a call
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Note: The dollar example above is illustrative only and not based on any specific property. Simi Valley's effective property tax rate is presented as a range from prior market research. Homeowners should confirm their own numbers with the Ventura County Assessor's office or a qualified tax professional before making decisions.
