Taking a Stance
Some people love it. Some people hate it. Some people do not care a bit about it, and some people do not even know what in the world all the talk is about, and then it hits them and they fall into either category one or two.
It involves property tax assessment values and transferring property to your heirs. The California Association of Realtors sponsored it and campaigned, donated and worked to get it passed and loves it. The Howard Jarvis Taxpayer Association campaigned against it and I read columns written by their president Jon Coupal and he thinks that it is a miscarriage of justice and penalizes property owners who are passing their holdings onto their heirs.
The Proposition changed Prop 60 and 90. Before 2/16/21 you could sell a home in California and transfer your low tax basis (if you had one) to another new home in your county and in about 10 other counties who voted to allow you to do so under Prop 90. You could do this one time and you were limited on the price of the home you purchased. Now, you can do it three times, to all counties in California, and there is no limit on the price of the new home. Real Estate Licensees like this and it is expected to increase the number of sales
CAR had tried to do this before and were defeated. This time they included some changes to the assessments passed on to heirs. New heirs can only get the lower basis if they live in a prior residence of their benefactor and are limited to a $1,000,000.00 value. Mr. Coupal believes that this penalizes heirs and people are hampered in willing their holdings.
The evidence that there are conflicting opinions is illustrated by the fact that the final vote on the Prop by the citizens of California was 51.11% Aye and 48.89% Nay. That is close. AND I have not mentioned the new home buyers who have gotten no consideration at all in this discussion; they might welcome some assistance.
My question: In the last nine months many of you have encountered the Proposition’s changes. It would be really appreciated if you would send me your story so I can tell my readers what is going on now in the real world. Please reply via email to [email protected]. Love it, hate it, no stance, or still do not understand it. Thank you.