In 2020, voters passed Proposition 19, which was designed so that eligible homeowners, when relocating, could transfer their property tax basis anywhere within the State and to a property of greater value. Previously, homeowners were limited to transfers within certain counties and to homes of the same or lesser market value. Those eligible are people 55 years or older, those living with severe disabilities, or anyone who has lost their home in a natural disaster.
With the passing of Prop 19, there also came a new provision stating that property must be reassessed to current market value when it is transferred from parents or grandparents to their children, causing severe financial consequences for children inheriting the property. The massive increase in annual property taxes on long-held family real estate can make it difficult or impossible for 2nd or 3rd generation owners to keep the properties. These sudden increases can also negatively affect renters, triggering higher rents and/or eviction when family-owned income properties are reassessed.
What can you do about it? The Howard Jarvis Taxpayers Association is gathering signatures to "Repeal The Death Tax." Signed petitions must be mailed back, post-marked on or before February 5th, 2024. You can click here to download the petition to include up to 2 signatures. Detailed instructions about how to fill out the petition and mail it back in time are included.
Please feel free to contact us to learn more about how you or someone you know may be affected by The "Death Tax."