November initiative would give baby boomers huge property tax break

http://www.dreamstime.com/-image14115451Older California residents who buy pricier homes could save thousands of dollars in property taxes under an initiative that has qualified for the statewide November ballot.

The initiative – backed by the California Association of Realtors – would change a key provision of Proposition 13, the state’s 40-year-old property tax law that ties a home’s assessed value to its sales price and caps the property tax rate at 1 percent of that value.

Under the initiative, people over the age of 55 moving within the state could pay property taxes based on the sales price of the home they are leaving.

For example, if a resident sells his or her home for $400,000 in Sacramento and then buys a condo in San Francisco for $1 million, their property tax rate would be discounted thanks to the lower Sacramento home value. In that instance, if the resident’s Sacramento assessed value was $200,000, the formula would result in a San Francisco assessed value of $800,000 on the $1 million condo, 20 percent less than it would be otherwise. …’

Click here to read the full article from the Sacramento Bee