Coming To A Ballot Near You – Property Tax Portability Throughout California (for some Californians)!
By | 10.11.2018 | Client Alerts
These days it may seem like there is no end in sight to California’s housing crunch – particularly in the Bay Area. But a proposition on this November’s ballot aims to give some relief by enabling certain mature homeowners to downsize (or upsize) without the penalty of dramatic property tax reassessment. What is it? One of the initiatives voters will be asked to approve in November is Proposition 5, which allows homeowners 55 years and older to transfer the property tax base of their current home to a new home, regardless of whether the new home is more or less expensive. Prop. 5 is an extension of Prop. 60 and Prop. 90, which currently allow a person over age 55 to transfer their property tax base to a less expensive home within the same county or in another county that has authorized such a transfer by ordinance. The rationale behind Prop. 60 and Prop. 90 was to allow older homeowners to downsize without incurring a large property tax increase. Under the existing Prop. 90, counties can choose whether to accept intercounty transfers of property tax assessments. Counties that currently allow for an incoming transfer of a property tax base are Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne, and Ventura. Currently, eligible homeowners can only transfer the tax value of a home one time. How It Will Work (According to Proponents) Prop. 5 will increase tax savings when purchasing a less expensive […]