What’s the Big Idea?
Should homeowners 55 and older be allowed to transfer their existing property tax rate — with a possible adjustment — to a new, more expensive home they buy somewhere else in California?
The Way It Is Now
Homeowners 55 and older can transfer their tax rate to a new home, if the county they move to allows it (about 10 do), or if their new home is in the same county and is worth less. Otherwise, buying a more expensive home means you’ll have a much higher tax bill.
What If It Passes?
Homeowners 55 and older or those with severe disabilities would be able to transfer their current reduced property tax to a new home they purchase in any California county. Their new tax assessment could be adjusted upward a bit, but moving to a new home would not mean a huge increase in your property tax bill.
Proposition 5 will allow seniors to move to a smaller home without fear of getting a huge increase in their property taxes. That will free up larger homes for young families with children.
This is just a huge tax giveaway to people who are already rich. It doesn’t build any new housing and won’t increase affordability for first-time homebuyers. Local governments would lose millions in annual property tax revenue.
YES for Proposition 5
NO for Proposition 5