California Proposition 19 (2020)
November 3, 2020 (2020-11-03)
Assembly Constitutional Amendment No. 11. Changes tax assessment transfers and inheritance rules
Results
Choice
 Votes  %
Yes 8,545,393 51.11%
No 8,175,618 48.89%

California Proposition 19 (2020), also referred to as Assembly Constitutional Amendment No. 11, is an amendment of the Constitution of California that was narrowly approved by voters in the general election on November 3, 2020, with just over 51% of the vote.[1][2] The legislation increases the property tax burden on owners of inherited property to provide expanded property tax benefits to homeowners ages 55 years and older, disabled homeowners, and victims of natural disasters, and fund wildfire response.[3] According to the California Legislative Analyst, Proposition 19 is a large net tax increase "of hundreds of millions of dollars per year."[4]

According to the ballot summary, Proposition 19:

  • Allows homeowners who are over 55 years of age (without regard to wealth), disabled, or victims of natural disasters to transfer their existing property tax assessed value under 1978 California Proposition 13 to a replacement home, including a more expensive home.
  • Significantly limits the existing property tax benefits under Proposition 13 for certain real estate transfers between family members, such as the transfer of property from a parent to a child following the death of the parent.
  • Expands property tax benefits for family farm transfers.
  • Allocates net state (but not local) revenues and savings (if any) to wildfire response and for reimbursing local governments. However, because the COVID-19 pandemic has created significant uncertainty for the state budget, the Legislative Analyst believes that the vast majority of the wildfire funding will not be available until 2025 at the earliest.[5]

The proposition was sponsored and heavily promoted by the California Association of Realtors, and became effective on February 16, 2021.[6][7]

Background

The California Association of Realtors previously sponsored and financed an initiative measure known as 2018 California Proposition 5 on the November 2018 ballot that would have further expanded Proposition 13 property tax breaks for certain homeowners (primarily homeowners over age 55) by allowing them to transfer their lower property tax base to replacement property.[8] That ballot measure failed statewide with 40% support, and also failed to receive majority support in all 58 California counties.[9] Proposition 5 opponents successfully argued that the initiative measure was a "huge tax break to wealthy Californians" and a "huge windfall to the real estate industry."[10]

In 2019, the California Association of Realtors sponsored and financed another initiative measure that would have expanded Proposition 13 property tax breaks for certain homeowners like the 2018 California Proposition 5 ballot measure. However, to generate a net increase in property tax revenue, the initiative also significantly narrowed Proposition 13 property tax reassessment exclusion rules for inherited properties and expanded the scope of business entity ownership changes that would result in commercial property reassessment under Proposition 13.[11] This initiative measure received sufficient signatures to qualify for the November 2020 ballot.[12]

Assembly Constitutional Amendment No. 11 (ACA 11)

As allowed under California law,[13] the California Association of Realtors negotiated with various special interests to secure legislative approval of an alternative constitutional amendment known as Assembly Constitutional Amendment No. 11 (ACA 11).[14] Proposition 19 was added to the ballot via ACA 11 which was authored by San Mateo Assemblymember Kevin Mullin.[15]

Significant controversy arose because the legislative approval of ACA 11 missed the regular legal deadline for placing measures on the November 2020 ballot, and the Legislature also had to enact a separate statute calling a special election for ACA 11 that was consolidated with the regular November 2020 election.[16] In response to the approval and qualification of ACA 11 for the November 2020 ballot, the California Association of Realtors withdrew its 2019 initiative measure that was previously eligible to appear on the November 2020 ballot.[17] The primary differences between Proposition 19 and the 2019 initiative measure withdrawn by the California Association of Realtors are that Proposition 19 excluded the expanded business entity ownership provisions that would have resulted in commercial property reassessment under Proposition 13 (to appease major business interests who did not like the business tax increase component of the 2019 initiative) and that Proposition 19 added the partial firefighting revenue provisions as a political sweetener (to appease firefighting organizations that previously opposed 2018 California Proposition 5).[18][19]

Thus, compared to the 2019 initiative measure, Proposition 19 retained the expanded Proposition 13 property tax breaks for certain homeowners (primarily homeowners over age 55) like those contained in the defeated 2018 California Proposition 5 ballot measure, retained the property tax increase provisions by significantly narrowing Proposition 13 property tax reassessment exclusion rules for inherited properties, and added the partial firefighting revenue provisions as a political sweetener.[20]

Legislative Votes on ACA 11

In California, constitutional amendments proposed by the Legislature require approval from two-thirds of the membership of each house.[21]

The following are the votes by the Members of the California Legislature on ACA 11, along with how the voters within the corresponding legislative district subsequently voted on Proposition 19:

California Assembly

Assembly votes are from the California Assembly Daily Journal[22] and Proposition 19 outcomes are from the California Secretary of State.[23] The vote designation of "Abstain" is for those Legislators present on the day of the vote,[24] but who did not record a vote for or against ACA 11. The vote designation of "Absent" is for those Legislators who were absent on the day of the vote. Assembly districts are based on the applicable 2011 district.

DistrictLast NameFirst NamePartyACA 11 VoteProp 19 Outcome
04Aguiar-CurryCeciliaDemYesPass
31ArambulaJoaquinDemYesPass
16Bauer-KahanRebeccaDemYesPass
24BermanMarcDemYesPass
05BigelowFrankRepYesFail
50BloomRichardDemAbstainFail
76Boerner-HorvathTashaDemAbstainPass
18BontaRobDemYesPass
73BroughBillRepNoFail
62BurkeAutumnDemYesPass
57CalderonIanDemYesFail
51CarrilloWendyDemYesFail
60CervantesSabrinaDemAbstainFail
49ChauEdDemYesFail
55ChenPhillipRepAbstainFail
17ChiuDavidDemAbstainPass
68ChoiStevenRepAbstainFail
25ChuKansenDemYesPass
08CooleyKenDemNoFail
09CooperJimDemYesPass
35CunninghamJordanRepAbstainFail
01DahleMeganRepYesFail
69DalyTomDemYesPass
72DiepTylerRepAbsentFail
13EggmanSusanDemYesPass
12FloraHeathRepYesFail
34FongVinceRepNoFail
11FrazierJimDemAbsentPass
43FriedmanLauraDemYesFail
45GabrielJesseDemYesFail
03GallagherJamesRepYesFail
58GarciaCristinaDemYesPass
56GarciaEduardoDemYesPass
64GipsonMikeDemYesPass
78GloriaToddDemYesPass
80GonzalezLorenaDemAbsentPass
21GrayAdamDemYesPass
14GraysonTimDemYesPass
41HoldenChrisDemYesFail
44IrwinJacquiDemYesPass
59Jones-SawyerReggieDemYesPass
27KalraAshDemYesPass
54Kamlager-DoveSydneyDemYesPass
06KileyKevinRepNoFail
36LackeyTomRepYesFail
10LevineMarcDemNoPass
37LimónMoniqueDemYesFail
28LowEvanDemYesPass
77MaienscheinBrianDemYesPass
26MathisDevonRepYesFail
42MayesChadIndYesFail
07McCartyKevinDemYesPass
61MedinaJoseDemYesPass
22MullinKevinDemYesPass
66MuratsuchiAlDemYesFail
46NazarianAdrinDemAbstainPass
70O'DonnellPatrickDemYesFail
33ObernolteJayRepYesFail
23PattersonJimRepAbstainFail
74Petrie-NorrisCottieDemAbstainFail
20QuirkBillDemYesPass
65Quirk-SilvaSharonDemAbstainFail
40RamosJamesDemAbsentPass
63RendonAnthonyDemYesPass
47ReyesEloiseDemYesPass
39RivasLuzDemYesPass
30RivasRobertDemYesPass
52RodriguezFreddieDemYesPass
48RubioBlancaDemYesFail
32SalasRudyDemAbstainFail
53SantiagoMiguelDemYesPass
38SmithChristyDemYesFail
29StoneMarkDemYesPass
19TingPhilDemAbstainPass
67VacantVacantVacVacantFail
71VoepelRandyRepYesFail
75WaldronMarieRepYesFail
79WeberShirleyDemYesPass
15WicksBuffyDemYesPass
02WoodJimDemAbstainPass
California Senate

Senate votes are from the California Senate Daily Journal[25] and Proposition 19 outcomes are from the California Secretary of State.[26] The vote designation of "Abstain" is for those Legislators present on the day of the vote,[27] but who did not record a vote for or against ACA 11. Senate districts are based on the applicable 2011 district.

DistrictLast NameFirst NamePartyACA 11 VoteProp 19 Outcome
26AllenBenDemAbstainFail
32ArchuletaBobDemYesFail
39AtkinsToniDemYesPass
36BatesPatriciaRepNoFail
15BeallJimDemYesPass
08BorgeasAndreasRepAbstainFail
35BradfordStevenDemYesPass
12CaballeroAnnaDemYesPass
29ChangLing LingRepAbstainFail
01DahlBrianRepYesFail
03DoddBillDemYesPass
24DurazoMaria ElenaDemYesPass
05GalgianiCathleenDemYesPass
07GlazerSteveDemYesPass
33GonzalezLenaDemYesPass
16GroveShannonRepAbstainFail
18HertzbergRobertDemYesPass
13HillJerryDemYesPass
40HuesoBenDemYesPass
14HurtadoMelissaDemAbstainPass
19JacksonHannah-BethDemYesFail
38JonesBrianRepNoFail
20LeyvaConnieDemYesPass
02McGuireMikeDemYesPass
28MelendezMelissaRepNoFail
30MitchellHollyDemYesPass
17MonningBillDemYesPass
37MoorlachJohnRepAbstainFail
23MorrellMikeRepNoFail
04NielsenJimRepNoFail
06PanRichardDemYesPass
25PortantinoAnthonyDemYesFail
31RothRichardDemYesPass
22RubioSusanDemYesFail
09SkinnerNancyDemYesPass
27SternHenryDemYesFail
34UmbergTomDemYesFail
10WieckowskiBobDemYesPass
11WienerScottDemYesPass
21WilkScottRepYesFail

Real estate industry sponsor and prior history

The California Association of Realtors sponsored the Proposition 19 constitutional amendment,[28] with the expectation of deriving significant profits from many more home sales under the ballot measure, including from both the expanded tax benefit portability provisions and from the significant narrowing of the inheritance exclusion provisions which will force more home sales.[29] The president of the California Association of Realtors has denied that Proposition 19 is about making money for the Realtors.[30]

Racial equity issues

In analyzing the Proposition 19 ballot measure, a September 2020 report by the California Budget & Policy Center stated that: "Housing policy and tax policy have historically benefited white households most, including through policies with explicitly racist design and implementation that have blocked Black and brown Californians from homeownership opportunities. By directing additional tax benefits largely to white homeowners, Prop. 19 reinforces racial inequity within California's tax system."[31]

The Greenlining Institute has also criticized Proposition 19 for not helping "first-time homeowners who are disproportionately Black, Indigenous and people of color."[32]

Campaign controversy

It was reported[33] that the California Association of Realtors, the sponsor of Proposition 19, hired a former employee of a statewide taxpayer association for the sole purpose of using the former employer's job title to confuse voters to support Proposition 19. A radio ad was cited in the article as being deceptive because the former employee led listeners to believe he was advocating for the Proposition 19 tax increase in his capacity as the former legislative director of the statewide taxpayers association. The statewide taxpayers association received many calls from voters who said they were disgusted by the misleading radio ads and large direct mail pieces by the Yes on 19 campaign. The reporting article also cited a California Globe analysis that Proposition 19 is a billion dollar tax increase on California families and that Proposition 19 was in fact opposed by the statewide taxpayers association.[34]

Newspaper editorials

According to the California Initiative Editorial Scorecard, Proposition 19 was opposed by 16 major California newspapers and supported by 5 major California newspapers.[35]

The following major California newspapers opposed Proposition 19:[36]

NewspaperPosition
Los Angeles TimesOppose
San Jose Mercury NewsOppose
Orange County RegisterOppose
East Bay TimesOppose
San Francisco ChronicleOppose
The Press-EnterpriseOppose
San Gabriel Valley TribuneOppose
The Daily BreezeOppose
Los Angeles Daily NewsOppose
The Santa Rosa Press DemocratOppose
Long Beach Press-TelegramOppose
Inland Valley Daily BulletinOppose
San Bernardino SunOppose
The Desert SunOppose
Chico Enterprise-RecordOppose
Bakersfield CalifornianOppose

The following major California newspaper supported Proposition 19:[37]

NewspaperPosition
San Diego Union-TribuneSupport
Sacramento BeeSupport
San Luis Obispo TribuneSupport
Fresno BeeSupport
Modesto BeeSupport

Campaign contributions

According to campaign contribution data from the California Secretary of State, as of November 1, 2020, supporters of Proposition 19 raised $47.0 million, with $40.4 million from the California Association of Realtors and $4.9 million from the National Association of Realtors, for a combined total of $45.3 million (96.4% of all campaign contributions) coming from real estate interests. Opponents of Proposition 19 raised approximately $45,000.[38]

Polling

In order to pass, Proposition 19 needed simple majority (>50%) approval by the voters which it narrowly received.

Poll source Date(s)
administered		 Sample
size[lower-alpha 1]		 Margin
of error		 For Proposition 19 Against Proposition 19 Undecided
SurveyUSA September 26–28, 2020 588 (LV) ± 5.4% 56% 10% 34%

Notes

  1. ↑ Key:
    A – all adults
    RV – registered voters
    LV – likely voters
    V – unclear

References

  1. ↑ Alpert, Adrienne (September 29, 2020). "What is Prop.19? Measure would change several facets of property tax rules in California". ABC 7. Retrieved September 29, 2020.
  2. ↑ "California voters approve Prop. 19, giving new property tax breaks to older homeowners". Los Angeles Times. 11 November 2020. Retrieved 24 November 2020.
  3. ↑ "California Proposition 19, Property Tax Transfers, Exemptions, and Revenue for Wildfire Agencies and Counties Amendment (2020)". Ballotpedia. Retrieved September 24, 2020.
  4. ↑ Grimes, Katy (October 26, 2020). "Former CAGOP Chairman, Taxpayers Assoc. Employee Mislead Voters on Prop. 19". California Globe.
  5. ↑ Dillon, Liam (October 19, 2020). "Who wins and who loses with California property tax measure Proposition 19". Los Angeles Times.
  6. ↑ "Proposition 19 – Board of Equalization".
  7. ↑ "A look at California's Real Estate Ballot Measures". 19 October 2020.
  8. ↑ Changes Requirements for Certain Property Owners to Transfer Their Property Tax Base to Replacement Property. Initiative Constitutional Amendment and Statute. California Initiative AG No. 17-0013 Am. 1 (2017).
  9. ↑ California Secretary of State, Statement of Vote November 6, 2018 General Election, pp. 95–97.
  10. ↑ Ballot Pamphlet, California General Election (November 6, 2018), argument against Proposition 5, p. 39.
  11. ↑ Changes Requirements For Transferring Property Tax Base To Replacement Property. Expands Business Property Reassessment. Initiative Constitutional Amendment. California Initiative AG No. 19-0003 (2019).
  12. ↑ California Secretary of State AP 20:040, New Measure Eligible for California's November 2020 Ballot, April 23, 2020.
  13. ↑ Cal. Elec. Code, § 9604.
  14. ↑ Assem. Const. Amend. No. 11, Stats. 2020, res. ch. 31.
  15. ↑ Campbell, Kelsey (August 5, 2020). "November 2020 Ballot Initiatives in California Aim to Change Policy on Commercial and Residential Properties". Briscoe Ivester & Bazel LLP.
  16. ↑ Cal. Stats. 2020, Ch. 26, effective June 30, 2020.
  17. ↑ California Secretary of State, Chief Counsel Letter Re Conditional Acceptance of Conditional Withdrawal of Initiative AG No. 19-0003, June 25, 2020.
  18. ↑ Ballot Pamphlet, California General Election (November 6, 2018), argument against Proposition 5, p. 39.
  19. ↑ Walters, Dan (September 30, 2020). "Proposition 19's tortuous journey to the ballot". Orange County Register.
  20. ↑ Assem. Const. Amend. No. 11, Stats. 2020, res. ch. 31.
  21. ↑ Cal. Const., art. XVIII, § 1.
  22. ↑ California Legislature (2019-20 Regular Session), Assembly Daily Journal, June 26, 2020, p. 4978.
  23. ↑ California Secretary of State, Supplement to the Statement of Vote November 3, 2020, pp. 185-192.
  24. ↑ California Legislature (2019-20 Regular Session), Assembly Daily Journal, June 26, 2020, p. 4950.
  25. ↑ California Legislature (2019-20 Regular Session), Senate Daily Journal, June 25, 2020, p. 3847.
  26. ↑ California Secretary of State, Supplement to the Statement of Vote November 3, 2020, pp. 167-171.
  27. ↑ California Legislature (2019-20 Regular Session), Senate Daily Journal, June 25, 2020, p. 3833.
  28. ↑ Assem. Floor Analysis of Assem. Const. Amend. No. 11, Concurrence in Sen. Amendments, June 25, 2020, p. 4.
  29. ↑ "Editorial: Prop. 19 perpetuates California property tax inequity". The Mercury News. August 1, 2020.
  30. ↑ Dillon, Liam (October 19, 2020). "Who wins and who loses with California property tax measure Proposition 19". Los Angeles Times.
  31. ↑ Kimberlin, Sara; Kitson, Kayla (September 2020). "Proposition 19: Creates a Complicated Property Tax Scheme and Reinforces Racial Inequities in California". California Budget & Policy Center. Retrieved 7 October 2020.
  32. ↑ The Greenlining Institute, 2020 California Ballot Propositions Guide (Proposition 19) (September 16, 2020).
  33. ↑ Grimes, Katy (October 26, 2020). "Former CAGOP Chairman, Taxpayers Assoc. Employee Mislead Voters on Prop. 19". California Globe.
  34. ↑ Grimes, Katy (October 26, 2020). "Former CAGOP Chairman, Taxpayers Assoc. Employee Mislead Voters on Prop. 19". California Globe.
  35. ↑ Rodota, Joe; Klink, Matt (October 14, 2020). "California Initiative Editorial Scorecard #3". Fox&Hounds. Retrieved 14 October 2020.
  36. ↑ Rodota, Joe; Klink, Matt (October 14, 2020). "California Initiative Editorial Scorecard #3". Fox&Hounds. Retrieved 14 October 2020.
  37. ↑ Rodota, Joe; Klink, Matt (October 14, 2020). "California Initiative Editorial Scorecard #3". Fox&Hounds. Retrieved 14 October 2020.
  38. ↑ "Campaign Finance Power Search, Ballot Measures Advanced Search (November 3, 2020 Ballot Measures, Proposition 19)". California Secretary of State. November 1, 2020.
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