Potential Changes to California Proposition 58’s Parent to Child Transfer Rules
With the November 2020 election quickly approaching, Californians are preparing to vote on several new ballot measures. Beware, one of these measures will have a significant negative impact on the Proposition 58 Parent to Child Exclusion from Property Tax Reassessment.
If passed, California Proposition 19 eliminates the Proposition 58 parent to child exclusion for property tax reassessment if the recipient doesn’t use the home as their primary residence. In that situation the property tax value of the home would be fully reassessed at current market value, potentially increasing the tax assessment dramatically and creating a financial burden for the owner.
Each day, California Proposition 58 protects families that have suffered the loss of a parent from owing thousands of dollars in property taxes while they settle their affairs. It is important to understand how Proposition 58 helps the average Californian. The majority of transfers from parent to child happen after both parents have passed. The date of passing of the last (surviving) parent will be used as the date of transfer to the beneficiaries (Children). Our data shows that on average it takes 17 months to settle the estate after the death of the surviving parent. During this time, the children are responsible for continuing to pay the property taxes on their parent’s home and on any other properties they own.
Under Proposition 58 (passed overwhelmingly by voters in 1986), a home and up to $1 million of assessed value of other real estate are excluded from reassessment when transferred between parents and children. This keeps the property tax assessment the same as if still owned by the parent.
Unfortunately, if Proposition 19 passes, a property transferred between parents and children would be reassessed to market value as of the date of transfer, which in the case of inheritance is the date of death. A child would have to move in and make the parent’s home his or her primary residence within one year in order to qualify for an exclusion from reassessment.
If children who inherit their parents’ home want to sell it, they would have to pay much higher property taxes over that average 17-month period from the date of death to the close of escrow. Our data shows this would mean an average of $8,500 in additional property taxes. Proposition 19 will create a new tax for average Californians that just lost a parent and dismantle some of the current California Prop 58 property tax benefits that are now in place.
The higher taxes under Proposition 19 would create a hardship for many children who inherit a home from a parent and force them to sell it even if they preferred to keep it. This might be great for realtors who expect to collect more commissions, but not great for a family grieving the loss of a parent.
We encourage you to Vote No on California Proposition 19 in the 2020 California Election. If you or a family member are currently in a position to take advantage of the Proposition 58 Parent to Child Exclusion from Property Tax Reassessment we suggest you act now!
Organizations, Politicians and Newspapers Against California Proposition 19 in the 2020 California General Election:
The Los Angeles Times Says Vote No On Prop. 19
The Orange County Register Says Vote No On California Proposition 19
The Mercury News Says Vote No On Proposition 19
The California East Bay Times Says Vote No On California Prop 19
The Howard Jarvis Taxpayers Association Says Vote No On California Proposition 19 2020
The American Civil Liberties Union (ACLU) Says Vote No on Prop 19 in the 2020 California General Election
The League of Women Voters Says Vote No On Proposition 19 in the 2020 California Election
The Long Beach Press-Telegram Says to Vote No On Proposition 19
The San Francisco Tenants Union Opposes California Prop 19
The Pasadena Star News Says to Cast a No Vote on Proposition 19
The San Francisco Women’s Political Committee Opposes Prop 19
The San Gabriel Valley Tribune – Vote No on Proposition 19
CaliforniaProposition58.org Says Please Cast A No Vote on California 2020 Proposition 19
The Cupertino Chamber of Commerce Opposes California Prop 19
The San Francisco Green Party Says Cast A No Vote for Proposition 19 in the 2020 California General Election
The California Republican Party CAGOP.org Says Vote No on California Prop 19 in the 2020 California Election
The Los Angeles Grand Old Party Urges You to Vote No on CA Prop 19 in the California General Election
The California Environmental Justice Alliance Says to Vote NO on Proposition 19
The Lincoln Club of San Diego County Encourages You to Vote No on California 2020 Proposition 19
The Sacramento County Republican Party Gives A No Vote on California Proposition 19 for the California 2020 Election on November 3rd
The Press Enterprise Says to Vote No in the 2020 California General Election on Proposition 19
The Bakersfield Californian Says Vote No on Prop 19 in the 2020 California Election
The Southern California Daily Breeze – Vote No on California Prop 19 in the 2020 Election
The Greenlining Institute Says Vote No On California Prop 19
The San Bernardino Sun is Against California Proposition 19
Family Voters Guide Says to Cast a No Vote on Proposition 19 in the November 2020 California Election
The Redlands Daily Says Vote No on California Proposition 19 in the November 3rd, 2020 General Election
The Republican Party San Luis Obispo County urges a NO VOTE ON PROP 19
The CFR of Women Voters Says to Vote Note on California Proposition 19 in the 2020 California General Election
The San Diego County Taxpayers Association Opposes Proposition 19
Congressman Tom McClintock Says to Vote No on Proposition 19 in the November 2020 Election
The Contra Costa Taxpayers Association Urges a No Vote on California Prop 19 this November
The Palm Springs Desert Sun Says to Vote No on California Prop 19
The Santa Barbara Independent Newspaper is Against California Proposition 19
The Libertarian Party of California Urges You to Vote No on California Proposition 19 this November 2020
Santa Rosa Press Democrat Says Vote No On California Proposition 19
The San Francisco Chronicle Urges You To Vote No In The 2020 California Election On Prop 19
The UCLA Daily Bruin Asks You To Vote No On California Proposition 19 This Election
The Ventura County Taxpayers Association Says To Vote No On Prop 19
To have your organization added to the No on California Proposition 19 List, please email firstname.lastname@example.org.