Proposition 19 was passed and as part of the measure, children who inherit their parents’ houses will no longer receive a property tax break if they intend to keep it as a second home or rent it out. This has a serious effect on the traditional parent-child exemption from reassessment under the original Proposition 13. Previously, transfers of the principal residence of a parent, and up to $1 million of assessed valuation of other property, passed to children without being reassessed for property tax purposes, thereby preserving the benefits of Proposition 13 for heirs and trust beneficiaries. Now, the exemption from property tax reassessment for property inherited from a parent (or grandparent if the parents are deceased) will only apply if the child occupies the real property and files a homeowner’s exemption application within one year.