Ad paid for by Stop the Tax Hikes, No on 15 and 19, A Project of the Howard Jarvis Taxpayers Association
Proposition 19 would require property transferred within families to be reassessed to market value as of the date of transfer, resulting in a huge property tax increase for long-held family homes. The only exception is if the children move into the home within a year and make it their principal residence. This is a billion-dollar tax increase on California families.
Prop. 58 says parents and children may transfer a home of any value and up to $1 million of assessed value of other property, such as a small business, without reassessment, so the tax bill stays the same. This was no loophole. Prop. 58 was approved by 75.7% of California voters. This is a huge tax increase on families, and it takes away rights that California voters put into the State Constitution by overwhelming votes.
Under current law, homeowners age 55 and older may move to a replacement home and keep the lower property tax bill from their previous home. There are some limitations on this tax break: the replacement home must be either in the same county (Proposition 60, 1986) or in a county that accepts the transfers (Proposition 90, 1988). Also, the replacement home must be of equal or lesser value, and a homeowner may transfer the base-year value only once in a lifetime. Proposition 19 eliminates the value and location restrictions and allows three transfers instead of one. While HJTA supports expanded portability, the value of this tax break must be weighed against the loss of the exclusion from reassessment for parent-child transfers that is in the State Constitution. The price is just too high.
Joining the conversation on this Special Saturday edition of the California Lodging and Investment Podcast is Susan Shelley, VP Howard Jarvis Taxpayers Association and we
Proposition 19 on the Nov. 3 ballot would close one inequity in California’s byzantine property tax laws and create another. It would eliminate provisions that