Thinking about selling your Westminster home but worried your next place will come with a much bigger property tax bill? You are not alone. Many longtime owners, especially seniors, want to downsize or move closer to family without giving up the tax savings they have built. In this guide, you will learn how California’s Prop 19 can help you move and keep a lower taxable value, what steps to take in Orange County, and how to avoid common pitfalls. Let’s dive in.
Prop 19 basics for Westminster sellers
Prop 19 lets eligible homeowners transfer the Proposition 13 base‑year value from their current primary home to a replacement primary home. This can help you keep a lower assessed value and reduce the tax shock of moving.
Here are the key points that matter:
- Effective date: applies to purchases or new construction completed on or after February 16, 2021.
- Who may qualify: homeowners age 55 or older, severely disabled homeowners, and owners whose home was destroyed or badly damaged in a Governor‑declared disaster.
- Where you can move: to a replacement primary residence anywhere in California.
- How many times: up to three transfers for 55+ or severely disabled homeowners. Unlimited transfers for eligible disaster victims.
- Primary residence only: both your original and your replacement home must be your principal residence.
Eligibility and timing
Principal residence requirement
Your original property must be your principal residence when you transfer the base‑year value. The new home must become your principal residence. You will need to show proof, such as a homeowner’s exemption, driver’s license address, or voter registration, based on county guidance.
Two‑year window
You have a two‑year window to buy or build your replacement home before or after the sale of your original home. That means you can buy first, then sell, or sell first and buy later, as long as both events fit within two years of each other.
Number of transfers
If you are 55 or older, or severely disabled, you can transfer your base‑year value up to three times in your lifetime. If your home was destroyed or damaged in a qualifying disaster, you can use this relief without a limit for those specific situations.
How the tax math works
Prop 19 compares the market value of your old home and your new home at the time of transfer.
- If your replacement home’s market value is less than or equal to your original home’s value, you generally keep your original assessed value on the new home.
- If your replacement home’s market value is higher, your new assessed value equals your original assessed value plus the difference between the two market values.
Here is a simple example:
- Original home market value at transfer: $800,000. Original assessed value: $300,000.
- Replacement home market value: $1,000,000.
- New assessed value = $300,000 + ($1,000,000 − $800,000) = $500,000.
In this example, your new assessed value is lower than a full reassessment at $1,000,000 would have been. That can produce meaningful annual tax savings.
Moving within or beyond Orange County
Prop 19 works statewide. This matters for Westminster sellers who may want to move within Orange County or beyond.
- Moving within Westminster or to another OC city: allowed. Your claim is handled by the Orange County Assessor’s Office.
- Moving to another California county, like Los Angeles County: allowed. Prop 19 is statewide. Counties coordinate on processing.
- Moving out of California: not allowed. You cannot transfer a California base‑year value to a property outside the state.
Steps to use Prop 19 in Orange County
Success with Prop 19 comes down to planning and paperwork. Here is a simple roadmap.
Before you list your home
- Confirm your eligibility with the Orange County Assessor’s Office and ask what documents they require.
- Gather proof of principal residence, such as a homeowner’s exemption, driver’s license, or utility bills.
- If you qualify as 55+ or severely disabled, collect proof of age or qualifying disability.
- Talk with your real estate agent and escrow about your timing. The two‑year window is key.
During contract and escrow
- Tell your escrow officer and agent that you intend to file a Prop 19 base‑year transfer.
- Keep copies of your sale documents and closing statements.
- If your plan involves buying before selling, or multiple properties, consider speaking with a CPA or real estate attorney.
After closing
- File the base‑year transfer claim with the Orange County Assessor promptly. Ask about processing timelines and any supplemental assessments.
- Follow up to confirm your homeowner’s exemption and mailing address are correct for the new home.
Real‑life Westminster scenarios
Scenario A: Downsizing within Westminster
You are 67 and sell your Westminster home, then buy a smaller place in Westminster six months later. If the new home’s market value is equal to or less than your old home’s value, your transferred assessed value can carry over. If it is higher, the assessor uses the difference formula explained above.
Scenario B: Moving to Newport Beach
You sell in Westminster and buy in Newport Beach. Prop 19 allows the transfer within the same county and statewide, so Orange County will process your claim. Your assessed value will adjust based on the relative values of the two homes.
Scenario C: Moving to Los Angeles County
You sell in Westminster and buy in Los Angeles County. You can transfer your base‑year value. You will file the claim with Orange County for the original property and follow the receiving county’s instructions as needed.
Scenario D: Moving to Texas
You sell in Westminster and buy in another state. Prop 19 does not allow you to move a California base‑year value out of state. Expect a new assessment based on the other state’s rules.
Scenario E: Multiple moves over time
You are 55 and plan to move more than once over the next decade. You can use up to three Prop 19 transfers for 55+ or severely disabled eligibility. Disaster‑related transfers are unlimited when the move is tied to a qualifying disaster.
Common questions and watchouts
- Proof matters. Be ready to show that both homes are your principal residences during the relevant periods.
- Timing is crucial. Keep a clear record of closing dates for both properties to show they fall within the two‑year window.
- Buying before selling is fine. You can purchase the replacement up to two years before you sell the original.
- The homeowner’s exemption is separate. Ask the assessor how it will apply to your replacement home after the transfer.
- Inheritance rules are different. Prop 19 also changed parent‑to‑child rules, but those are separate from the 55+/disabled base‑year transfers.
- Tax bills update on a cycle. Your first tax bill after the move may include supplemental assessments. The assessor can explain timing.
How NAMY Inc can help
Coordinating a sale and purchase within Prop 19’s rules takes planning. As a local, integrated brokerage and mortgage firm serving Westminster and greater Orange County, we help you align price, timing, and financing so your move fits the two‑year window and your paperwork is complete. Our team supports seniors and cost‑conscious sellers with clear steps, lender coordination, and steady communication from listing to closing.
Ready to talk through your move and paperwork? Schedule a free consultation with Namy Inc.
FAQs
Who qualifies for a Prop 19 base‑year transfer when selling a Westminster home?
- Homeowners who are 55 or older, severely disabled, or whose home was destroyed or damaged in a Governor‑declared disaster, as long as both homes are principal residences.
How long do I have between selling and buying to use Prop 19?
- You have a two‑year window to buy or build the replacement home before or after the sale of your original principal residence.
Can I buy my replacement home before I sell my current Westminster home?
- Yes. You can purchase up to two years before the sale, provided you meet all other eligibility and documentation requirements.
How many times can I transfer my base‑year value under Prop 19?
- If you are 55 or older or severely disabled, you can transfer up to three times; disaster‑related transfers are unlimited when tied to a qualifying event.
Does Prop 19 work if I move from Westminster to Los Angeles County?
- Yes. Prop 19 is statewide, so you can transfer your base‑year value to a replacement primary residence anywhere in California.
Can I transfer my California base‑year value if I move out of state?
- No. Prop 19 does not allow transfers to properties outside California.
How will my new property’s assessed value be calculated if I buy a more expensive home?
- The new assessed value equals your original assessed value plus the difference between the new home’s market value and the old home’s market value.
