Page 40 - AMM-JAN2022-1

longtime owner. Under Proposition 19, high taxes resulting from intergenerational transfers will put upward pressure on rents and turn rental housing into a dismal game of musical chairs as affordable units are withdrawn from the market.
The taxpayer protection in which Proposition 19 took away was originally [passed and made a part of the California constitution in 1986. The Legislature wrote a constitutional amendment to create the parent- child exclusion from reassessment and passed it unanimously in both houses. It was Proposition 58 on the ballot, and it was approved by more than 75% of voters statewide. Ten years later, Proposition 193 extended the same rules to transfers of property between grandparents and grandchildren if the children’s parents were deceased. Proposition 19 took that away, too.
Now, only a parent’s primary residence that becomes the permanent primary residence of the child within one year is excluded from reassessment, with a $1 million limitation or “cap” on the additional value that may be excluded. Assessors will have to reassess all property that is inherited and then apply the limited exclusion for qualifying primary residences.
The only other exclusion from reassessment is for family farms. All other property, including small business properties and rental housing, is now reassessed to full market value upon transfer from parent to child or grandparent to grandchild.
“It’s hard to imagine anything more callous than the government sending a giant tax bill to a bereaved family, but thanks to Proposition 19, many California families will have that unfortunate experience,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association.
The Howard Jarvis Taxpayer Association is sponsoring an initiative that will restore Proposition 58 and Proposition 193 to the state constitution.
The Repeal the Death Tax Act would enable parents or grandparents to transfer a primary residence of any value to their children or grandchildren without triggering reassessment. The initiative also excludes up to $2.4 million of assessed value of other property from reassessment when transferred to the next generation. That figure is the inflation-adjusted value of the $1 million exclusion that was in 1986’s Proposition 58, and it would be adjusted annually for the cost of living, capped at an increase of 2% per year to match the growth in taxable value under Proposition 13.
“We are collecting signatures right now,” said Coupal. The initiative needs 997,139 valid signatures of registered voters by mid-April in order to qualify for the November 2022 ballot. Petitions are available at the Howard Jarvis Taxpayer Association’s office and by mail. Please contact (213) 384-9656 or go online to www.HJTA.org/RepealTheDeathTax and click “Get the Petition” to have the official initiative petition mailed to you.
Also at the website, individuals and groups can sign up to join the coalition, donate online or by mail, download flyers and FAQs, and find the latest news and information about the campaign. “This is a grassroots initiative and we welcome everyone’s help to get this on the ballot,” Coupal said. “It’s vital to protect California families from being taxed out of their own property. This is the spirit of Proposition 13.”
Susan Shelley is Vice President of Communications for the Howard Jarvis Taxpayers Association. She can be reached at Susan@hjta.org. The Howard Jarvis Taxpayers Foundation is the largest taxpayer association in California with a membership of over 200,000. Founded by the late Howard Jarvis, the author of Proposition 13, the foundation’s name is synonymous with tax relief and the uncompromising defense of California’s property owners.
DECKING & STAIRWAYS
REPAIR SPECIALIST
• Decks • Stairways • Balconies • Walkways •
• Patios • Courtyards • Swimming Pool Decks • Roof Decks •
• Magnesite & Fiberglass Systems • Epoxy Gravel • All Deck Systems •
• All Diato Systems • Replace • Repair • Reseal • 100% Waterproof • Painting •
• Metal Stairways • Pre-cast Steps • Metal Railings • Metal Posts • Rotten Wood Repair • Welding Repair • Stucco Repair • Resurfacing • Maintenance Free • 10 Year Guarantee And Up •
RASH YAMBO - rashyambo@yahoo.com
323-r7as1ya7mb-o3784Over 25 Years 800-677-6168 Experience
Lic. #804656 • Fully Insured • Bonded • All Work Guaranteed • œuality Work • Low Prices • Free Estimates
aptmags.com/on-demand
FREE WEBINARS ON-DEMAND
CS-18 JANUARY 2022 - APARTMENT MANAGEMENT MAGAZINE
NON SLIP
NON SKID