"Originality is the fine art of remembering what you hear but forgetting where you heard it." - Laurence J. Peter
Happy Halloween to all the loyal followers of the minngo network!! This festive themed newsletter covers a hot topic that is just around the corner as we head into election season.
How many of us have studied in detail each of the propositions on the ballot this year? Or did you simply look at all the signs or television smear campaigns and pick the one that caught your attention? Ok all jokes aside, the detailed propositions are complicated to keep track of and that's why I'm here to fill you in on the proposition affecting real estate. Proposition 5 is up for a vote in the next couple of days and here are some facts to help you gather more information!
Under current California law, property taxes are set at about 1% of the assessed value of the property when purchased. This becomes known as the property’s “tax base.”
When a homeowner sells their home, they lose this tax base. For people who have owned their homes for a long period of time, a move to a new home can mean a massive increase in their property tax base in what amounts to a “moving penalty.”
Prop 5 eliminates the moving penalty to protect seniors (55+) and severely disabled people who want to move to more practical homes or closer to their families. This initiative limits the property tax penalties they could face if they purchase another home in a county of the state while ensuring they pay their share of property taxes.