Example Scenario

Imagine this situation:

• A family’s home burns down in a wildfire, and the government declares it a disaster.
• Before the fire, the home was estimated to be worth $600,000 on the open market (Fair Market Value immediately before the fire).
• For property tax purposes, the family was only paying taxes as if the home were worth $250,000 (Assessed Value on Property Tax Bill), thanks to Proposition 13 and similar rules.

How Prop 19 Helps:

• Since the home was severely damaged and the disaster was declared, the family can transfer their low assessed value when buying a new home anywhere in California.
• They are not required to stay in the same city or county.

Taxable Value Scenarios:

• Scenario 1: If they buy a less expensive home—for example, one priced at $500,000 (less than the original Fair Market Value of $600,000)—they keep the same assessed value of $250,000.
• Scenario 2: If they buy a more expensive home—say, one priced at $800,000 (more than the original Fair Market Value)—the difference of $200,000 ($800,000 – $600,000) is added to the original assessed value, resulting in a new assessed value of $450,000.

To qualify for this benefit, the family must purchase or build a new home within 2 years of selling their old one – unless the property is in a federally declared disaster area, in which case the window is extended to 4 years – and file an application with the county assessor in their new location.

In simple terms, Prop 19 helps disaster victims move anywhere in California while keeping their property tax rate relatively low—even if they upgrade to a more expensive home.