BOE Adjusts the Proposition 19 $1 Million

Intergenerational Transfer Exclusion Amount

On March 7, the California State Board of Equalization (BOE) released the new amount adjusting the $1 million exclusion for Proposition 19 intergenerational transfers occurring on February 16, 2023, through February 15, 2025. The BOE is required to calculate and publish the adjustment every other year based on the Federal Housing Finance Agency’s House Price Index for California.  This is the first adjustment since the passage of Proposition 19 in November 2020, and the amount increased by 2.26 percent to $1,022,600.

“The 2.26 percent increase will provide additional tax savings to those who transfer their home or family farm to their children or grandchildren,” said BOE Chairman Antonio Vazquez.

Proposition 19 only allows for a principal residence or a family farm to be transferred between a parent and a child or between a grandparent and a grandchild, where the grandchild’s parents are deceased without a property tax increase up to a certain value if the property continues to be the principal residence or the family farm of the transferee. The excludable amount is capped equal to the principal residence or family farm’s taxable value at the time of transfer plus $1,022,600. As part of the requirements, the transferee must apply for the homeowners’ or disabled veterans’ exemption within one year of the purchase or transfer of the family home or farm.

The notice to County Assessors was issued today in Letter to Assessors No. 2023/012. For the latest information on Proposition 19, please visit the BOE website.

The California State Board of Equalization (BOE) is the only elected tax board in the country, and it is comprised of four Equalization District Members and the State Controller. Since 1879, the BOE’s constitutional and statutory duties include the oversight of the 58 County Assessors to ensure assessment practices are uniform and consistent statewide. In addition, the BOE directly assesses the property of regulated railroads and certain public utilities, collects the Private Railroad Car Tax, and is responsible for the Alcoholic Beverage Tax and Tax on Insurers.  BOE’s critical role in property tax administration by promoting fair and equitable assessments protects the tax dollars that schools, local communities, and the State of California depend on every day.