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Proposition 19 Repeal Efforts Fall Short For November Ballot Initiative 

  • May 8, 2022
  • devinlucas

Efforts to repeal Proposition 19’s costly Death Tax On Inherited Property have fallen short for the November ballot initiative. 

Over 402,000 signatures were obtained to repeal those provisions of Prop 19 which wiped out former Propositions 58 and 193 (those propositions allowed parents to transfer their ‘prop 13 basis’ or ‘proposition 13 basis’ to their children; now no longer due to Prop 19’s changes, thus causing a substantial ‘death tax’ on California inherited property). 

With this effort not on the November ballot, it unfortunately means the costly death tax on inherited property caused by Prop 19 is here to stay for the considerable future.  

The Howard Jarvis Taxpayers Association led the charge in this effort. (Link to HJTA here.)  As you may know, Howard Jarvis and the HJTA are the founders of California Proposition 13, which keeps California Property Taxes tied to the original purchase price (or fair market value at the time of purchase), and not adjusted to fair market value, thus saving homeowners countless thousands on their property taxes.  The longer you have owned your property, the more you save thanks for Prop 13.

Former Propositions 58 and 193 allowed these savings to be passed along to children (or child to parent, or grandparent to grandchild in some cases and vice versa).  But Prop 19 wiped out these savings, costing California homeowners millions (if not billions) a year in increased property taxes. 

Repeal the Death Tax collected over 402,000 signatures, but will miss the November 2022 ballot.  From the HJTA official release: 

The team at HJTA has been counting petitions for days and we now have a final total of 402,175 signatures. That’s a very strong showing, but unfortunately it’s short of the 997,139 needed to qualify for the November 2022 ballot. We sent out a news release a few hours ago; you can read it below.

Because of your outstanding efforts, we exceeded the important legal threshold of collecting 25% of the required signatures, and that triggers a requirement for the Legislature to hold an informational hearing on our measure. It is possible for the Legislature to pass a constitutional amendment with a two-thirds vote in the Assembly and the Senate, which would then go on the ballot for voter approval. That remains a possibility for 2022. Any new effort at an initiative would be for the November 2024 ballot. HJTA is currently reviewing all data from the campaign and considering next steps.

In his book, “I’m Mad as Hell,” Howard Jarvis wrote about the signature drive in 1977 that ultimately led to the passage of Proposition 13. “A lot of people were skeptical, and they certainly had a right to be,” he wrote. “The politicians, in particular, didn’t take us seriously. After all, we’d had four petitions before, and none of them had gotten on the ballot.”

That’s right. It took five tries before Proposition 13 qualified for the ballot.

We have made amazing progress in this effort. Thank you for everything you’ve done to help Repeal the Death Tax. We greatly appreciate you, and we will keep you informed of developments.

Thank you again for being a part of this remarkable grassroots campaign.

What can you do to reinstate former Proposition 58 and Proposition 193… 1) join the HJTA (link to HJTA here); 2) contact your local elected state representative asap and tell them to reinstate Propositions 58 and 193.

Questions or Need Help?

Thinking of gifting or selling California real estate to your children or parents; inherited California real estate and have questions?, we would love the opportunity to assist. Call or write anytime or book a consultation.

Questions? – Paid one-hour confidential legal consultations are conducted daily via Zoom and address virtually all questions, options, tax implications and strategies. (Book a consultation here.)

– 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 California intra family transfers using all aspects of Propositions 13, 58, 193, 60, 90 and new Proposition 19Learn more about how Lucas Real Estate may help your family transfer by clicking here.

Questions? – Paid one-hour confidential legal consultations are conducted daily via Zoom and address virtually all questions, options, tax implications and strategies. (Book a consultation here.)

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