EFFORT TO QUALIFY REAL ESTATE TAX PORTABILITY BALLOT MEASURE GENERATING LOTS OF EXCITEMENT
If you are a REALTOR® you have probably been asked to sign the petition that would place an issue on the November ballot that would allow those aged 55 and over to sell their home and buy another while retaining their original tax protections under Prop 13.
If you have not signed that petition, stop by any NSDCAR Service Center and do so as soon as possible. For those circulating petitions, please turn them in to a service center this week. Deadlines are near for those signatures to be submitted and it required time to validate each one.
REALTORS® have enthusiastically embraced this effort because they see how this could help many of their senior clients.
Under Proposition 13, homeowners are protected from rapidly increasing property taxes. However, seniors, who are often on a fixed income, fear they will not be able to afford a big property tax increase if they sell their existing home and buy another one, discouraging them from ever moving. As a result of this “moving penalty,” almost three-quarters of homeowners 55 and older haven’t moved since 2000. The initiative will allow them to sell their home while keeping their property tax protections, and therefore create homeownership opportunities for young families.
How do property tax assessments work now?
The amount any homeowner pays in property taxes is based on the assessed value of their home at the time of purchase. Generally, Proposition 13 limits property taxes to 1 percent of the assessed value at the time of purchase even if the value of the property subsequently increases. Unfortunately, homeowners lose their Proposition 13 property tax savings when they move to another home.
Under current law, Proposition 60, senior homeowners – defined as 55 years of age or older – are allowed to transfer their property tax basis to another home in the same county so long as the purchase price of the replacement home is equal to, or less than, the sale price of the original residence. Under Proposition 60, a senior homeowner is limited to making only one such transfer over the course of his or her lifetime. And, if the spouse of a senior homeowner has already transferred a property tax basis, that senior homeowner is disqualified from making another transfer.
Proposition 90 is an extension of the original Proposition 60 program. Proposition 90 allows senior homeowners to transfer their property tax basis to a home in a different county so long as that county accepts such transfers. (At last count, only 11 counties are accepting transfers from other counties.) Propositions 60 and 90 are relatively limited. That’s where C.A.R.’s property tax base portability initiative comes in.
How will the initiative work? C.A.R.’s Portability Initiative would allow homeowners 55 years of age or older to transfer their Proposition 13 property tax base to a home of any price, located anywhere in the state, any number of times.
What’s next? C.A.R. is in the process of hiring a campaign firm to qualify the initiative for the November 2018 general election ballot. In the meantime, C.A.R. will be asking members to help collect signatures on petitions to qualify the initiative. You will receive more information about this effort in the coming weeks.
Who do I contact with additional questions? Please contact Keismond Trammer with additional questions. He can be reached (213) 739-8389 or via e-mail at firstname.lastname@example.org.
Petitions are now available at all NSDCAR Service Centers. We urge REALTORS® to join in this effort by contacting friends and clients and getting them to sign the petition that will allow this to go on the Nov. 2018, ballot.
Here is some information to help you if you would like to circulate petitions.
✓ You can mail all completed petitions to:
▪ California Association of REALTORS® ▪
P.O. Box 1199
▪ Sacramento, CA 95812-9981, or simply return them to any NSDCAR Service Center.
✓ THE PETITIONS MUST BE SUBMITTED INTACT. DO NOT TEAR THE SIGNATURE PAGE OFF THE REST OF THE PETITION.
✓ C.A.R. needs time to process and verify signatures. Please send signed petitions back as soon as at least a few of them are complete. Don’t wait to send all of them back at once.
REALTORS®, affiliates or anyone who volunteers can circulate the petition as long as they are aware of and follow the following state laws. To knowingly fail to do so is a misdemeanor under state law. Please make sure that anyone circulating the petition is aware of these rules: