California Proposition 19

PublishedJanuary 12, 2021
California Proposition 19

On November 3, 2020, California voted in favor of Proposition 19. Passing this proposition provides a property tax break for older homeowners and raises taxes for those inheriting family properties.

Proposition 58: The Proposition Prior to Proposition 19

Proposition 58 is currently in effect. It allows parents to transfer a primary residence to their children without any new fair-market reassessment. This applies regardless of how the children chose to use the real property. This allows children to inherit the same property tax basis their parents. They can transfer the primary residence with no cap on the assessed value. Before Proposition 19, secondary properties could transfer with up to $1 million exempt from tax increases.

The Difference Between Tax Assessment and Fair Market Assessment

A tax assessment is the value assigned to real property by the local government to collect taxes that support the community. A fair market assessment is the value of real property based on its potential sale price on the open market.

Who is Prop Proposition 58 Most Favorable To?

Proposition 58 is most favorable to families that have owned real property with low assessed values. For instance, a 60-unit apartment complex in the San Francisco Bay Area purchased by a married couple in 1979 may have an assessed value just under $2 million. Under Proposition 58, the couple could transfer this property to their children without reassessment.

When Will Proposition 19 Become Effective?

Proposition 19 replaces Proposition 58. Beginning February 16th, 2021 the ability to transfer $1 million of assessed value of other property that is not the primary residence is completely eliminated.

Two Conditions Must Be Meet Under Proposition 19

The ability to transfer a primary residence between parent and child without reassessment will not apply unless two conditions are made. The two conditions are: 1) the parents’ primary residence must also become the child’s primary residence, and 2) the fair market value of the primary residence at the time of transfer cannot exceed the parents’ assessed value by more than $1 million. If, at the time of transfer, the difference between the assessed value and the fair market value of the home is more than $1 million, the new assessed value will be the fair market value less $1 million. For example, if parents purchased a rental property in 1940 for $50,000, and the value of the rental property is more than $1 million when it is transferred to a child after February 16, 2021, the parents’ tax basis does not pass to that child. Therefore, the child will now have to pay the property tax based on the assessed fair market value.

Examples of How Prop 19 Works

Example of how Prop 19 works: a parent owns a home that is his primary residence and has a rental property in California. The home has an assessed value of $500,000 and a fair market value of $3 million. The rental property also has an assessed value of $500,000 and a fair market value of $2 million. Even though the properties have different fair market values, their property tax liability is similar because they have the same assessed value. The combined annual property tax of both properties with a property tax rate of 1.25% is $12,500. The parent now wishes to transfer both the properties to his daughter.

Result Before Prop 19

Before Prop 19: No reassessment on the home or rental property transfer. The parent can transfer the home regardless of value, and the rental property's value is below the $1M threshold. Thus, the combined annual property tax will remain at $12,500. The daughter can use both properties as investment properties without restrictions.

Result With Prop 19 in Effect

Result with Prop. 19 in Effect: there is an adjustment to the assessed value of the home and a full reassessment on the rental property. The new value is $2 million, as the fair market value exceeds the previous by over $1 million. The rental property’s new assessed value is $2 million, as no exemption applies to non-primary residences. Thus, the new combined annual property tax will be $50,000. If the daughter doesn’t live in the family home, it will be reassessed at $3 million, raising the annual tax to $62,500.

The Impact of Proposition 19 on Real Estate Inheritance and Taxation

Proposition 19 significantly changes the tax rules for inheriting real estate. Prior to its enactment, parents could pass homes or second homes to their children under Proposition 58. They could change them without changing the tax assessment as long as the value of the property did not exceed a prescribed threshold.

How Proposition 19 Changes Taxation

After the passage of Proposition 19, the situation changed. Now, when property is transferred, the tax basis is recalculated if the value exceeds $1 million. This means that heirs who receive property from their parents must pay taxes based on the fair market value of the property. For example, if the value of a home exceeds $1 million, the new estate tax could increase significantly.

What Heirs Need to Consider

An important point for heirs to consider is that if the property received is not the principal residence, it will be subject to a full revaluation. This will result in a significant increase in tax liability. However, if the heirs continue to live in the house transferred to them, they can keep the tax relief. But only if the difference between the market value and the assessed value does not exceed $1 million. For more information on Proposition 19 and its effect on tax liability, contact KAASS LAW.

Los Angeles Real Estate Attorney

For more information on Proposition 19 we invite you to contact Our Los Angeles real estate attorney at (310) 943-1171.

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What to Do After an E-Bike Injury in California

E-bikes are gaining popularity across California, offering an efficient and eco-friendly way to get around. But with the rise in usage, the number of e-bike injury incidents involving both riders and pedestrians has also grown. If you’ve been injured while riding an e-bike—or struck by one—you need to take swift action to protect your health and your legal rights. Here's what to do immediately after an injury accident in California

Step 1: Get Medical Attention for Your E-Bike Injury

Your health should always come first. After an e-bike injury, call 911 or go to the nearest emergency room, even if you feel okay. Some injuries, such as concussions or internal bleeding, may not show immediate symptoms.

Seeing a doctor promptly not only protects your health but also creates a medical record that can be critical if you decide to pursue a legal claim.

Step 2: Report the E-Bike Injury to the Police

Call local law enforcement to report the accident. In California, any collision involving injury or property damage must be documented. The responding officer will create an official police report.

Be clear and honest when giving your statement. Make sure you ask how to obtain a copy of the report. It will serve as important evidence in your case.

Step 3: Preserve Evidence—Don’t Disturb the Scene

In any e-bike injury case, preserving the accident scene is critical. If you are physically able, avoid moving the e-bike, other vehicles, or debris until authorities arrive. This helps investigators document the scene accurately.

Take photographs or videos of:

  • Damaged e-bikes or vehicles
  • Skid marks and debris
  • Traffic signs or signals
  • Visible injuries
  • Your location relative to the road or sidewalk

If you're unable to take photos yourself, ask a witness or bystander to help. Never clean up or move items until the scene is documented.

Step 4: Collect Witness Statements After an E-Bike Injury

Witnesses can play a key role in verifying your version of events. If anyone saw the crash, ask them for:

  • Full name
  • Contact information
  • A brief statement of what they saw

Eyewitness accounts are especially helpful in e-bike injury cases involving disputes over right of way, sidewalk use, or rider negligence.

Step 5: Document Your Injuries and Financial Losses

Keep records of everything related to your e-bike injury, including:

  • Photos of injuries
  • Doctor’s notes
  • Prescriptions
  • Physical therapy sessions
  • Time missed from work
  • Property damage (e.g., broken phones, cracked helmets, damaged e-bike)

Hold on to all bills, receipts, and repair estimates. This documentation will help build your case and support your claim for compensation.

Step 6: Don’t Speak to Insurers Without Legal Help

After an e-bike injury, insurance companies may contact you for a statement. Don’t provide one without first consulting a lawyer. Insurers often try to minimize payouts or shift blame.

At KAASS LAW, we deal with insurance adjusters on your behalf. We make sure your rights are protected and help you pursue fair compensation.

Step 7: Understand Liability in an E-Bike Injury Case

Determining fault is key in any e-bike injury case. Liability may fall on:

  • A negligent e-bike rider
  • A driver who hit a rider
  • The city has hazardous road conditions
  • An e-bike manufacturer is experiencing equipment failure

A personal injury attorney can help investigate the cause, gather evidence, and identify all responsible parties.

Common Causes of E-Bike Injury in California

Here are the common causes of e-bike injury for both riders and pedestrians:

  • Reckless or speeding riders
  • Riding on sidewalks or pedestrian paths
  • Distracted riding or driving
  • Mechanical failures (brakes, tires, batteries)
  • Dooring accidents from parked vehicles
  • Failure to yield at crosswalks or stop signs

If negligence was involved, you may be eligible for compensation for your injuries and damages.

Know Your Rights After

California law provides legal options for victims of injury accidents. Whether you're a rider or a pedestrian, you have the right to seek damages if someone else was at fault.

Visit our Personal Injury and Bicycle Accident Lawyer pages to learn more about your rights and how KAASS LAW can help.

When to Contact an Attorney

Don't wait to speak with a qualified attorney if you’ve suffered an injury in California. At KAASS LAW, we assist victims in gathering evidence, filing claims, and securing the compensation they deserve.

We offer free consultations and work on a contingency fee basis, meaning you pay nothing unless we win your case.

E-Bike Safety Resources

Visit the National Highway Traffic Safety Administration (NHTSA) to learn more about e-bike safety, traffic laws, and accident prevention. This reputable resource offers valuable guidance for both riders and motorists.

Call KAASS LAW Today for Help With Your E-Bike Injury Case

If you or a loved one has been involved in an e-bike injury accident—whether as a rider or a pedestrian—you don’t have to face the aftermath alone. The legal team at KAASS LAW is here to help you understand your rights, gather critical evidence, and pursue the compensation you deserve.

Our experienced California personal injury attorneys have successfully represented clients in a wide range of transportation-related accident cases. We are committed to holding negligent parties accountable and helping you get the justice you need to move forward. Call us today at (310) 943-1171 or visit kaass.com to schedule your consultation.

Supreme Court Revives Challenge to Clean Car Rules

What Are California's Clean Car Rules?

Clean Car rules refer to California's vehicle emission standards aimed at reducing air pollution and greenhouse gases. These rules come from the California Air Resources Board (CARB). They require automakers to cut tailpipe emissions and produce zero-emission vehicles like electric or hydrogen-powered cars.

California's program is stricter than federal rules. Over a dozen other states have adopted these standards under Section 177 of the Clean Air Act.

Legal Challenge to Clean Car Standards Gains Traction

Recently, the U.S. Supreme Court allowed a lawsuit against California’s Clean Car rules to move forward. This case was brought by Republican-led states and industry groups. They claim that California's authority to set its own emission rules is unconstitutional.

The main argument revolves around the federal Clean Air Act. It allows California to request a waiver to impose stricter standards. The plaintiffs argue that these waivers create confusion and impose unfair burdens on car manufacturers. Automakers must then meet both federal and California standards.

Supreme Court Declines to Block the Case

The Supreme Court did not rule on the lawsuit’s outcome. Instead, it simply allowed the case to continue in lower courts. This reverses earlier decisions that blocked the case on jurisdictional grounds.

California Attorney General Rob Bonta has promised to defend the rules. Environmental groups also support the Clean Car program, citing public health and climate benefits.

What This Means for Automakers and Consumers

If the challenge succeeds, California might lose its power to enforce stricter emissions rules. Automakers would likely reduce investments in zero-emission vehicles for the California market.

Consumers could see fewer Clean Car options and increased vehicle emissions. If California wins, the state could continue shaping national clean vehicle policy and technology.

Environmental and Health Impacts

Clean Car standards are about more than climate change. They address serious public health concerns. Vehicle emissions worsen smog and trigger asthma and heart conditions, especially in cities.

California suffers from some of the worst air pollution in the U.S. Areas like Los Angeles and the Central Valley are most affected. Clean Car rules aim to reduce the harm caused by millions of vehicles.

To learn more about vehicle pollution and public health, visit the Environmental Defense Fund.

Legal Battle Over State vs. Federal Power

This lawsuit raises big questions about federalism. Should California be able to set stricter rules than the federal government?

The Clean Air Act gives California the right to apply for waivers. That’s because the state has struggled with air pollution for decades.

Opponents argue these waivers give California too much control over national markets. Supporters say they drive innovation and protect public health.

The Trump administration revoked California’s waiver. President Biden later restored it. The back-and-forth has led to legal uncertainty.

Clean Car Standards Drive the Electric Vehicle Future

No matter how this case ends, the shift toward electric vehicles (EVs) is underway. Automakers like Tesla, Ford, and GM are heavily investing in EVs.

Clean Car rules helped build charging infrastructure and encouraged EV adoption. Weakening these rules might slow progress. But market forces and climate goals will likely keep the EV transition moving forward.

KAASS LAW’s Legal Insight

At KAASS LAW, we closely track cases like the Clean Car challenge. Environmental laws affect businesses, consumers, and government entities alike. Our attorneys are ready to help you understand and respond to these legal changes.

Visit our Business Law page to learn how we assist clients with compliance and litigation. We also handle Lawsuits and Litigation in various sectors, including environmental matters.

What Happens Next?

The case returns to lower courts for full litigation. Both sides will present their arguments. A final decision may take years.

Until then, Clean Car standards remain active. Automakers, regulators, and environmental groups will be watching closely. The ruling could reshape national clean air policy.

Conclusion

The Supreme Court’s action allows a high-stakes lawsuit against California’s Clean Car rules to move forward. The outcome will affect state powers, public health, and the auto industry.

Whether you’re a business, consumer, or policymaker, the decisions made in this case could impact you. Contact KAASS LAW to learn how we can help you navigate these evolving legal landscapes.

California’s IVF Access Law May Be Delayed

California positioned itself as a leader in reproductive rights by passing legislation that would expand IVF access through mandated insurance coverage. However, a recent amendment to the law has delayed its implementation from 2025 to 2026. This decision has left many prospective parents feeling abandoned, financially overwhelmed, and unsure of their next steps.

At KAASS LAW, we help individuals and couples navigate the complex legal and insurance systems tied to fertility treatments. In this post, we examine what California’s delayed IVF law means and what options remain available for those affected.

IVF Access Law: What California Promised

The law aimed to increase IVF access by requiring most health insurance plans in California to cover in vitro fertilization. Governor Gavin Newsom signed the law in October 2023, with the original start date set for January 1, 2025.

Specifically, the law:

  • Defined infertility as a disease
  • Required insurance providers to cover diagnosis and treatment, including IVF
  • Applied to both employer-sponsored and individual health plans

By removing cost barriers, the state hoped to give more people the chance to build families through assisted reproductive technologies. However, legislators have now pushed the effective date to January 1, 2026.

IVF Access Delay: Real-World Consequences

This delay affects more than just policy—it impacts lives. IVF success rates often depend on timing. A one-year wait can lower success rates, especially for individuals over 35 or those with medical conditions.

Here’s what the delay means for patients:

  • Insurance companies are not legally required to provide IVF coverage until 2026
  • Individuals must continue paying out-of-pocket or rely on plans that offer voluntary benefits
  • Delayed access may force some patients to postpone or abandon fertility plans entirely

People now face added stress, high treatment costs, and fewer alternatives. While the law’s delay may serve administrative needs, it introduces serious emotional and financial challenges for families.

If you’ve been denied fertility-related benefits or misled by your insurer, KAASS LAW can help you understand your rights. Visit our insurance claim disputes page for support.

Why Lawmakers Delayed IVF Access

California lawmakers claimed that insurers and state regulators needed more time to implement the IVF mandate. Insurance companies argued that they required time to update policies, calculate cost impacts, and train staff.

Supporters of the delay believe that a smoother rollout will ultimately help everyone. But many reproductive health advocates disagree. They argue that the delay prioritizes bureaucracy over people who have waited long enough.

Fertility treatment is not a luxury—it is a medical necessity for thousands. Lawmakers must balance administrative readiness with real human needs.

To read more about the recent delay, visit this Los Angeles Times article

Understanding the Legal Landscape of Reproductive Rights

California typically leads the way in protecting reproductive rights. While states like Alabama and Tennessee restrict IVF and other treatments, California’s legislation represents progress. However, delays like this reveal gaps between legal promises and practical realities.

Patients still lack guaranteed access to IVF, even though the law exists. Until full implementation occurs, patients must rely on employer benefits, personal savings, or outside funding sources.

At KAASS LAW, we support clients facing legal and insurance hurdles related to healthcare. If your insurance policy misrepresents its fertility benefits or denies a valid claim, we’re ready to act. Explore our healthcare law services for more information.

What You Can Do While Waiting for Coverage

Even though the law won’t take effect until 2026, there are still actions you can take right now to protect your family-building journey:

1. Check your current coverage

Review your plan’s benefits and exclusions. Some employer-sponsored plans may offer IVF coverage voluntarily.

2. Ask your HR department or broker

Employers can modify group health plans at any time. If you’re part of a large organization, collective requests for fertility coverage may influence change.

3. Apply for fertility grants

Several nonprofits provide financial assistance for IVF. Clinics may also offer payment plans, refunds for unsuccessful cycles, or package pricing.

4. Document insurance interactions

Save emails, letters, and notes from calls with insurance reps. If your benefits are misrepresented or claims are wrongly denied, legal action may be possible.

5. Contact a fertility law attorney

You don’t need to navigate this alone. Attorneys experienced in insurance and healthcare law, like the team at KAASS LAW, can evaluate your situation and suggest the best next steps.


KAASS LAW Supports IVF Patients and Families

Fertility issues can be deeply personal and legally complex. The delayed IVF access law adds another layer of difficulty to an already overwhelming process. Our attorneys work with clients to resolve disputes involving:

  • Denied insurance claims for IVF or other reproductive procedures
  • Failure to disclose policy limits or exclusions
  • Misleading marketing materials related to fertility coverage
  • Delays or denials based on age, gender, or medical history

We take a proactive approach to insurance disputes. Whether you need help appealing a denial or filing a legal complaint, KAASS LAW stands by your side throughout the process.

IVF Access Can’t Wait

Delaying IVF access might serve short-term policy goals, but it harms real people today. Fertility doesn’t pause for bureaucratic processes, and neither should your ability to receive care. California made a bold promise by passing this law. Now, the state must ensure its timely and effective implementation.

In the meantime, patients deserve accurate information, strong legal protections, and affordable options. At KAASS LAW, we are committed to helping families overcome the legal and financial barriers that stand between them and their dreams of parenthood.

If you believe your rights have been violated or your insurer acted in bad faith, contact us today. Let’s work together to protect your future.