California is still counting ballots, believe it or not, but we wanted to let you know the results of the November election with regard to the statewide ballot measures. Although the results will not be certified as “final official” until December 11, we do not anticipate the outcome of these measures will change.
We’re very pleased that Proposition 15, the split-roll attack on Proposition 13, went down to defeat. We’re grateful that voters rejected Proposition 21, which would have allowed cities to enact radical rent control laws. It’s also good news that Proposition 18 was defeated; it would have lowered the voting age in primaries, potentially allowing high-school students to vote on tax increases.
At the same time, we’re saddened to report that Proposition 19 has passed. Although this measure will expand “portability” of property tax base-year value, allowing homeowners over age 55 more opportunities to move to a replacement home while keeping their prior home’s lower tax bill, the downside is that this measure has repealed Proposition 58 (1986) and Proposition 193 (1996). The loss of these constitutional amendments means property will be reassessed to market value when it is transferred from parents to children, and sometimes from grandparents to grandchildren. The only exception is if the person to whom the property is transferred moves in within one year and the property is that person’s principal residence.
Important information:
Proposition 19 is NOT RETROACTIVE, so if you inherited property in the past, your property tax bill WILL NOT BE AFFECTED.
Proposition 19 is effective for parent-child transfers that occur AFTER February 15, 2021.
Proposition 19 is effective for property tax base-year transfers ON or AFTER April 1, 2021.
As always, before making any changes to the title of your property, be sure to consult a trusted attorney, accountant or estate planning professional. There may be tax consequences—apart from property taxes—such as capital gains or gift tax liability. Unfortunately, HJTA cannot give individual legal or financial advice.
Please be very cautious if you receive high-pressure solicitations by phone, mail or email offering legal or financial services in connection with changing the title of your property. These may be scams.
Below are the latest election results for the 12 statewide propositions. For full results of statewide and district races, go to
https://electionresults.sos.ca.gov/, and for the results of local races in every county, visit the website of the county election offices, listed here:
https://www.sos.ca.gov/elections/voting-resources/county-elections-offices
Thank you for your support of HJTA. We greatly appreciate you, and we wish you a very happy Thanksgiving.
Sincerely,
