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

Comments

  1. Stanley B. Manley says

    As an old fart I like this idea but it bothers me very much that young people today are having a helluva time buying homes. How about we do something for them as well?

  2. CaliExpat says

    Im more concerned that the La Raza legislature will pass an exit tax on gains on sale on those fortunate enough to cash out and buy out of state to escape the insanity of the laws being proposed and passed in that formerly great state of California…

  3. What happens to local programs that let old guys – like me – sell a big home to buy a smaller retirement home and KEEP our prop 13 base from our old home??? It sounds like this kills that program and will force me to Arizona or Texas if I downsize!!! Is this just another Tax Increase?

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