San Luis Obispo county assessor Tom Bordonaro is notifying county residents that property tax transfer laws are changing dramatically. He says families may want to act now to protect lower taxes when passing property ownership within a family.
Bordonaro says, “Taxpayer protections for inherited property are changing in a big way. These changes are the result of proposition 19 that removes benefits and protections for families wishing to pass property to the next generation.”
The intent of the 35-year tax break was to encourage families to retain ownership of farms and ranches. Under the new law, transfers of property within a family are limited to a principal residence. That’s without triggering a reassessment of the property.
Bordanaro says taxpayers may wish to consult an attorney regarding the pending changes in inheritance property tax laws.