If seniors face losing their low property tax rate, they may never move out of homes that are too big for them, exacerbating housing shortages.
That’s one argument for Prop. 19, which is on the November ballot.
The ballot measure would allow homeowners who are over 55, disabled or whose homes have been damaged by natural disasters to sell their home and buy a new house anywhere in California and keep the same low property taxes that they paid on the previous home.
Those who inherit a home from a parent or grandparent could only keep that low property tax rate if it is their primary residence.
Some area residents say they support the measure because it would help seniors who want to move or downsize but are worried about losing their tax rate.
“I believe that Prop. 19 gives seniors the ability to purchase a home that makes sense for them,” said Sebastian Garcia,a La Puente resident and community volunteer. “With age, our livelihood often changes so personally, I would vote yes on Prop 19.”
The bill was sponsored by the California Association of Realtors, according to CalMatters.
Felix Hernandez, a La Puente resident and a real estate agent, said the measure would likely help senior citizens like his parents.
“I have two elderly parents in full retirement. And they have always wanted to buy another bigger house so that all of their children and grandchildren can visit,” he said, “but finances have always been a deal breaker. If Prop. 19 would benefit my elderly parents in purchasing with their dream home, I will support its passing.”
Some opponents of the measure worry the lower property taxes will lead to other California residents having to pay higher taxes to make up for the tax revenue loss. But the California Legislative Analyst’s Office reports the measure is expected to increase property tax revenue by tens of millions of dollars.
That’s because the measure would deny the tax break for inherited homes that are used as rentals and many seniors move of out of big homes and downsize, which means the bigger homes can generate more tax revenue under new ownership.
Most of the additional tax revenue generated from this provision would go to a state fund to fight fires, which helped earn the support of the California Professional Firefighters.
The fact that the measure effectively increases taxes for some who inherit property is a deal-breaker for Jose Ramos, a
La Puente resident.
“For many, their only chance is inheriting a home from their parents. If their property tax goes up, they will end up losing that opportunity. My son is autistic and will need additional care when I leave this earth. An additional tax burden is not something I want him to deal with,” Ramos said. “There is a massive housing crisis in California and this proposition weakens Propositions 13 and 58 for future generations. California is heavily taxed. It’s no wonder people are leaving. ”
The complete 2020 voter guide is available here.
Community News reporters are enrolled in JOUR 3910 – University Times. They produce stories about under-covered neighborhoods and small cities on the Eastside and South Los Angeles. Please email feedback, corrections and story tips to [email protected].
