California Proposition 19 (effective February 2021) changed rules for inherited real estate property tax. For most inherited investment properties (including apartment buildings), property tax reassesses to current market value on inheritance.
Before Prop 19, children could inherit a parent's real estate and keep the parent's Prop 13 assessed value regardless of how the child used the property. Prop 19 narrowed this significantly:
For inherited LA multifamily, property tax typically jumps 2-4x from the decedent's tax base to current market value.
For heirs inheriting LA multifamily in 2026, Prop 19 is a significant cost consideration in the hold-vs-sell decision. The reassessed property tax often tips the math toward selling rather than holding. Factor into inheritance planning and post-inheritance decisions.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
Thinking about selling? Get a no-obligation evaluation from a broker with $1.41 billion across 254 closed LA multifamily transactions.
Request Free Evaluation →