Prop. 13 Will Blunt the Property Tax Windfall as Boomers Transfer Property to Millennials

The benefits of Prop 13's limit on property taxes will pass from generation to generation in California, at the expense of state and local coffers.

1 minute read

June 25, 2017, 7:00 AM PDT

By James Brasuell @CasualBrasuell


[Updated June 21, 2018] A new report from the California Legislative Analyst predicts that property tax revenue will grow as aging boomers leave the homeownership market. Still, transferring property ownership will lessen that new revenue to the tune of $1.5 billion a year.

A few key points from the recent report by the California Legislative Analysts Office, as explained in the summary:

  • "California’s homeowners are getting older. In recent years, this has contributed to declining property sales and depressed property tax growth. As California’s homeowners continue to age, however, these patterns are likely to reverse."
  • These potential future property tax gains could be lessened by an increase in transfers of homes from parents to children, which often are exempt from revaluations that trigger higher property tax payments.
  • These parent-to-child exclusions have been a notable and consistent share of home transfers in recent years, currently reducing annual property tax revenues by around $1.5 billion statewide.

The report is included in its entirety on a post on the LAO's website, and includes a breakdown of the findings, organized by several key talking points, along with infographics and data to build and illustrate the case.

Tuesday, June 20, 2017 in California Legislative Analyst's Office

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Yellow single-seat Japanese electric vehicle drivign down road.

The Tiny, Adorable $7,000 Car Turning Japan Onto EVs

The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.

June 6, 2025 - PC Magazine

White Waymo autonomous car driving fast down city street with blurred background at night.

Seattle's Plan for Adopting Driverless Cars

Equity, safety, accessibility and affordability are front of mind as the city prepares for robotaxis and other autonomous vehicles.

4 hours ago - Smart Cities Dive

Two small wooden one-story homes in Florida with floodwaters at their doors.

As Trump Phases Out FEMA, Is It Time to Flee the Floodplains?

With less federal funding available for disaster relief efforts, the need to relocate at-risk communities is more urgent than ever.

6 hours ago - Governing

People riding bicycles on separated bike trail.

With Protected Lanes, 460% More People Commute by Bike

For those needing more ammo, more data proving what we already knew is here.

June 16 - UNM News