ACA 11 (Resolution, Chapter 31). Mullin. The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfires or Natural Disasters Act
A similar measure was defeated in 2018 but has been rewritten. The measure helps qualified homeowners who are “house rich, income poor,” while it prevents use of low-tax-rate property for income generation. By terms of Proposition 58 (1986), property with low tax rates due to age of purchase could be transferred to children and grandchildren with the same rates and valuations. In many instances wealthy individuals use that property as rental income far exceeding the tax rates paid. Proposition 19 does expand the use of existing low rates for seniors, those with disabilities, victims of wildfire or natural disaster, allowing transfer or senior rates to any county and allowing the transfer three times v. once. However, it bars inherited property from being used for income generation and requires it must be used as the primary residence by those who inherited it. All such rental properties will be reassessed upward to full market status thus generating new tax revenue. This impacts 40-60,000 taxpayers. 75% of new revenues will be assigned to the Fire Protection Fund, 25% to County Revenue Protection Fund for any possible loss of tax revenue. Every older property released for actual sale will also generate higher tax rates and more revenue for the county.
RSS Feed
