California property tax law is notoriously complex, and Proposition 19, passed by voters in 2020, made it even harder for families to plan. The measure altered long-standing inheritance protections that had helped Californians preserve family homes across generations.

Under Prop. 13, parents could transfer a primary residence of any value, and up to $1 million in assessed value of other property, to their children without triggering a property tax reassessment. Prop. 19 eliminated those protections.

Today, an inherited home retains only part of its original tax base, and only if the heir makes it their principal residence. Even then, the exclusion is capped at roughly the parents’ assessed value plus about $1 million. Any value above that is reassessed at market value. If the heir does not occupy the home, the entire property is reassessed.

As a result, many heirs, particularly those with modest incomes, face property tax increases they cannot afford. The Legislative Analyst’s Office has acknowledged that limiting inheritance exclusions increases local property tax revenues over time, while restoring the old rules would reduce revenues by billions annually. California State Controller Malia Cohen has warned that these changes disproportionately burden Black, working-class and blue-collar families for whom homeownership is the primary path to building and preserving wealth.

The impact is visible in long-established communities such as Venice. While often portrayed as affluent, Venice is home to working-class families of every race who purchased homes in the 1970s, 1980s, and 1990s often for under $250,000. Today, those homes may be worth $2 million to $3 million.

Consider Ernesto, a retired plumber who purchased his Vernon Street home in 1976 for $64,000. He and his wife, Linda, live modestly on Social Security. Their adult son, Felix, has learning disabilities and continues to live with them. He cannot afford market-rate housing. Under Prop. 19, when Ernesto and Linda pass away, Felix will only keep the home if he lives in it and can pay the property taxes on any value above the exclusion cap. For a $2.2 million home, that could be over $13,000 annually, more than $1,100 a month. Prior to Prop. 19, the property tax bill would have been under $2,000 annually.

Felix’s story is not unique. Thousands of Californians with disabilities or modest incomes live with aging parents and expect to inherit their homes. Prop. 19 replaced that expectation with uncertainty and, in many cases, displacement.

As a professional accountant, I see that homeownership in California is increasingly restricted to those earning six-figure incomes. Service workers, middle-income earners and minimum-wage workers are effectively locked out. For many families, the inherited home was the last bridge to stability. Prop. 19 weakened that bridge.

While not a traditional estate tax, Prop. 19 has been called a “death tax” because families are losing homes not for wealth, but because real estate has become extraordinarily expensive.

If California is serious about addressing homelessness and supporting working-class families, lawmakers must confront the consequences of Prop. 19 and restore broader inheritance protections for primary residences. Preserving intergenerational housing stability is not merely a tax issue — it is essential to safeguarding the future and dignity of countless residents.

For the good of our communities, Prop. 19’s inheritance provisions must be reversed.

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Paul Dictos, CPA, is Fresno County assessor-recorder.