Exceptional news (but don’t hold your breath just yet) – a bill has been introduced in the California Legislature to repeal the costly property tax increases imposed on property owners’ heirs by Proposition 19 (which causes, in most cases, a reassessment of real estate upon the death of the owner, no longer allowing for the long-standing parent-child exclusions; review our in-depth analysis of Prop 19 throughout our website, starting here [link to more Prop 19 info]).
Contact your state representatives immediately and encourage them to support this bill! (You can look up the names and contact information for your representatives here [link to findyourrep.legislature.ca.gov]). Sample letter below.
Senator Kelly Seyarto and Assemblyman Philip Chen have co-authored Senate Constitutional Amendment 4, which would restore the right of parents to transfer their home and a limited amount of other property to their children without reassessment to market value, and without any change to the property tax bill.
SCA 4 would repeal the “death tax” imposed by Proposition 19 and essentially reinstate the former Proposition 58, which had been California law since 1986 (by a unanimous vote of the Legislature and with the approval of 75% of voters). It would also reinstate Proposition 193, which was the 1996 addition extending the same rights to grandparents in certain situations.
Currently, due to the deceptive Proposition 19 (advertised as helping wildfire victims and silent on its enormous tax increase to property owners), property is reassessed to current market value when transferred within families except under certain situations and with low thresholds that assure virtually all property in Newport Beach, Costa Mesa and other costal communities will be reassessed upon death. This results in huge tax increases to children, many of whom cannot afford to then keep the homes, thus forcing many children to sell their parents’ properties, especially investment properties, which only accelerates the loss of affordable housing as the new owners of those investment properties will assuredly raise rents.
SCA 4 would restore Propositions 58 and 193 to the constitution.
Action Alert: Please call and/or write your state representatives in the Senate and Assembly and urge them to become co-authors of, and fully support, SCA 4.
You can look up the names and contact information for your representatives here (at findyourrep.legislature.ca.gov) or in the government pages of your local phone directory.
Sample email to send (but please make personal to you and your situation as desired):
Please co-sponsor and support Senate Constitutional Amendment 4, i.e. effort to repeal the death tax imposed by Proposition 19. Proposition 19 is having a detrimental impact on countless families in our area that simply cannot afford the dramatic increase in property taxes when their parents die. With housing affordability more challenging than ever, please help people stay in their family homes by repealing those portions of Prop 19 and allow children to keep their parents current tax basis so they can stay in their homes. Housing prices are higher than ever and reinstating prop 58 will help people stay in their homes! Otherwise, many people are forced to sell their homes which only drives up the cost of real estate for everyone else by virtue of the higher and higher sales prices and, in the case of rental properties, increased rents by new owners. Please reinstate prop 58. THANK YOU!
– Devin Lucas
Author Devin R. Lucas is a Real Estate Attorney, Broker and REALTOR®, specializing in Newport Beach, Costa Mesa and Orange County coastal communities, serving individual and investors in residential real estate.
Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in residential real estate transactions, tax considerations, Trustee representation, family sales, and California’s Proposition 19.
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REALTORS® and related Real Estate Law & Tax Considerations
lucas-real-estate.com | [email protected] | BRE No. 01912302
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Newport Beach | California | 92663-4023
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