IMPORTANT PROPERTY TAX INITIATIVE
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Currently, Homeowners 55 years of age and older may sell their home and move within the same county OR a few other designated counties in California ONCE and pay property taxes on the lesser of: the original property tax basis for the home they just sold, or the actual calculated property tax of the new property.
Homeowners have been encountering these limitations:
Limitations on where they can move. If not within the same county or the 12 other select counties in California, this benefit is lost. This has discouraged freedom of movement as well as discouraged ever moving at all.
Disincentive to move more than once after the age 55—the benefit may only be claimed ONCE.
The financial implications of property taxes are compounded by the SALT tax changes, making property taxes that much more of a financial concern and especially so on older homeowners.
The Results are:
Concerns about a “moving penalty” has inhibited some homeowners from achieving the living situation they desire.
Inventory levels, already constrained, are getting further squeezed making it more and more difficult for new homebuyers to achieve their homeownership dreams.
To alleviate these concerns, a Property Tax Fairness Initiative is slated to go before the California legislature in November IF the initiative can garnish enough support. The initiative will:
Allow for unlimited transfers of a qualifying homeowner’s original tax basis;
Allow for transfers to ANY county within California.
It is estimated by California’s Legislative Analyst Office that the initiative would create tens of thousands of additional homeownership opportunities each year. Increased home inventory for all homebuyers and allowing homeowners freedom to make homeownership choices without financial penalty are benefits we hope appeal to our communities as a whole.
The Initiative will be on the November 2018 ballot for a vote.