Thinking about selling in Coronado and buying another California home, but worried your property taxes will jump? You are not alone. Many local owners want to right-size or move closer to the water and keep their tax base intact. In this guide, you will learn how California Proposition 19 works, who qualifies, how the tax math is calculated, and the steps to file your claim in San Diego County. Let’s dive in.
Prop 19 basics for Coronado moves
Proposition 19 lets eligible homeowners transfer the taxable value of their current primary residence to a replacement primary residence anywhere in California. This is often called portability or a transfer of base year value. The big benefit is that your new property taxes can be based on your old assessed value instead of a full reassessment at today’s market price.
To use Prop 19, the home you sell must be your principal residence. The replacement home must also become your principal residence. Vacation homes and rentals do not qualify.
Who qualifies and how often
You may qualify if one of these applies:
- You are age 55 or older.
- You are severely disabled.
- Your home was substantially damaged or destroyed by a wildfire or other disaster that led to a state of emergency.
Most eligible owners can transfer their base year value up to three times. If your move is due to a qualifying disaster, the number of transfers may be unlimited under state rules. You can move anywhere in California and keep the benefit. Transfers outside California are not covered.
Timing rules you must meet
You must purchase or newly construct the replacement residence within a two-year window. That window can be up to two years before or up to two years after you sell the original home. Counties have filing procedures and practical deadlines, so confirm details with the San Diego County Assessor and file as early as possible.
How the tax math works
Here is the core idea: you move your old taxable value to your new home, with an adjustment if the replacement is more expensive.
- If your replacement home’s market value is equal to or less than the market value of your original home, your old taxable value transfers unchanged.
- If your replacement is more expensive, the difference in market value is added to your transferred taxable value.
The formula the assessor uses is straightforward:
- New taxable value = Old taxable value + max(0, Replacement market value − Old market value)
Expect supplemental assessments during and after closing. These are separate from the regular annual bill and reflect the timing of ownership and value changes.
Upsize vs downsize in Coronado
- Upsize: Coronado is a high-cost, low-inventory island market. If you buy a more expensive home, you will add the price difference to your old taxable base. Your tax bill will rise compared with a straight transfer to a lower-priced home.
- Downsize: If you buy at an equal or lower price, your old taxable value moves over unchanged. This can reduce your ongoing tax burden compared with a full reassessment.
- Move out of state: Prop 19 benefits do not follow you outside California.
What counts as your residence
Prop 19 applies to a qualifying primary residence. That can be a single-family home, a condo, or in some cases a mobile home if it is your principal residence. Many Coronado owners also hold a second property. To qualify, the original property you sell must be your principal residence under assessor rules. The replacement you buy must also become your principal residence.
Filing your transfer in San Diego County
You file your claim with the county assessor where the replacement property is located. If you are staying in San Diego County, file with the San Diego County Assessor. If you are buying in another California county, file there instead.
Here is what the process typically involves:
- Complete the county’s claim form for a transfer of base year value under Prop 19.
- Provide documentation that proves eligibility and timing.
- Allow the assessor to review, calculate the transferred value, and adjust the tax roll. Supplemental bills may be issued and then adjusted.
Documents you may need
- Proof of age or disability when applicable.
- Recorded deeds or grant deeds for both properties.
- Closing statements for the sale and the purchase.
- Your most recent property tax bill for the original home.
- Proof of principal residence for the replacement home, such as your driver’s license address or voter registration.
- Disaster documentation if you qualify under the disaster provision.
Work with escrow early
Inform your escrow officer and your agent early if you plan to file a Prop 19 claim. Supplemental taxes tied to reassessment timing can be prorated in escrow or handled post-closing once the county processes your claim.
Planning tips for Coronado sellers
- Confirm eligibility: Age 55 or older, severely disabled, or disaster-affected. Count how many transfers you have used.
- Set your timeline: Make sure your replacement purchase or construction falls within the two-year window.
- Call the assessor: Contact the San Diego County Assessor for the current Prop 19 claim form and filing instructions.
- Gather documents: Deeds, closing statements, IDs, recent tax bill, and proof of principal residence.
- Estimate impact: Run a tax-impact scenario using the formula so you understand your likely annual taxes and any supplemental bills.
- Coordinate pricing: In a high-value Coronado market, upsizing can add a meaningful amount to your taxable value. Align your pricing and purchase plan with your tax goals.
- Get advice for complex cases: If inheritance, multi-owner title, or blended family transfers are involved, consult the assessor and a qualified tax professional.
Real-world scenarios
- Downsize on the island: You sell a larger Coronado home and buy a smaller condo that costs less. Your old taxable value typically transfers unchanged, which can keep your taxes relatively low on the new home.
- Move-up in Coronado: You sell and buy a more expensive house nearby. You keep your old taxable value but add the price difference to it. Expect higher taxes than a pure transfer to a lower-priced home.
- Sell in Coronado, buy elsewhere in California: You can carry your base year value statewide, whether you choose a coastal condo or a suburban single-family home, as long as it becomes your principal residence.
- Move outside California: Prop 19 does not apply to out-of-state purchases. Your new home will be taxed under the other state’s rules.
Common pitfalls to avoid
- Missing the two-year window: Track your dates for both sale and purchase. Aim to file your claim promptly.
- Buying a second home: The replacement must be your principal residence. A vacation or rental home will not qualify.
- Skipping escrow coordination: Supplemental tax bills can surprise you later. Loop in escrow early so everyone can plan for assessments and prorations.
- Assuming inheritance rules are the same: Prop 19 narrowed parent-child and grandparent-grandchild exclusions. If inheritance is part of your plan, confirm the current rules before you act.
Your next move
Prop 19 can be a powerful tool if you want to enjoy a new chapter in Coronado while keeping your property taxes in check. The key is to confirm eligibility, plan your timeline, and file correctly with the county. If you want help mapping the move, pricing your Coronado home, or scouting on-island and statewide options that fit your tax strategy, connect with Matt Kidd. We will align your real estate goals with a clear plan and disciplined execution.
FAQs
Can I transfer my Coronado tax base anywhere in California?
- Yes. Prop 19 allows eligible owners to transfer their base year value to a replacement principal residence anywhere in California.
How many times can I use Prop 19 portability?
- Generally up to three times for eligible owners. Transfers tied to qualifying disasters may be unlimited under state rules.
What if my replacement home costs more than my Coronado sale?
- You add the price difference to your transferred base. The formula is: new taxable value equals old taxable value plus the difference in market values if the replacement is higher.
Do I need to buy before or after I sell?
- Either can work. You have a two-year window that can be up to two years before or up to two years after you sell the original home.
Do condos and townhomes qualify as replacement homes?
- Yes, if they are your principal residence. The same rules apply to single-family homes and some manufactured homes that are primary residences.
Where do I file my claim for a Coronado move?
- File with the county assessor where your replacement property is located. For San Diego County purchases, file with the San Diego County Assessor.
What documents will the assessor ask for?
- Expect to provide proof of age or disability when applicable, deeds, closing statements, a recent tax bill, and proof that the replacement property is your principal residence.
Does Prop 19 affect the buyer of my old Coronado home?
- No. The buyer will be assessed at current market value unless they qualify for their own separate exclusion.
