I think this new rule only applies to property that is inherited and not lived in by the inheritor (e.g., rental property or vacation home). If you inherit a home and live in it, I think you can still keep the old property tax basis. There may be some dollar value limitations or other rules I’m not remembering though.

EDIT: just checked, the property value can go up by $1M from when it was purchased without the inheritor owing additional tax. [1] Beyond that, tax is due on the incremental additional appreciation. In reality, this will only affect properties in a few metro areas (Bay Area, LA, OC, SD) and certain beachside properties. This isn't to say that the law is good or bad, just to describe the scope of its likely impact.

1: https://www.cunninghamlegal.com/california-legal-services/ca...