CA Proposition 58 “Parent to Child Transfer” ~ Ability to AVOID Property Tax Reassessment is Under Assault from Proposition 19 & Prop 15
CA Prop 13 & Prop 58… Avoiding Property Tax Reassessment Gives Seniors Dignity; Protects Elderly Widows & Retirees on Fixed Incomes from Eviction, Foreclosure and Financial Hardship
Most Californians are familiar with Proposition 58 and the Prop 58 parent to child exclusion — protecting home owners and commercial property owners from evaluation and property tax reassessment at current tax rates… allowing them to avoid property tax reassessment basically forever.
California Proposition 58 also serves to protect property owners whose debt is at or exceeds $8,500 in additional property taxes, while they settle their financial affairs. Prop 58 allows beneficiaries who wish to keep inherited property in their family to buyout co-beneficiaries’ property shares, through a trust loan, and helps those looking to keep their inherited home also keep a low Proposition 13 protected property tax base their parents paid. And everything is win-win — unlike in most other states in America. Unless you’re very rich. Then none of this matters. This type of property tax relief protects middle class property owners mainly from the tax man.
In 1986, to protect families from massive property tax hikes, voters passed Proposition 58, revising the California constitution to ensure transfers of property between parents and children could be executed with the right to avoid property tax reassessment. Under Proposition 58 property of any value, plus additional property with up to a million dollars of assessed value, can be transferred between parents and children without reassessment.
The main financial sponsor of ACA-11 (Proposition 19) is the California Association of Realtors (C.A.R.). They have now disappointed millions of working class and middle class property owners in California with this proposed betrayal of California principles. C.A.R. decided to kill the property tax relief fair-play system in the state of California. Why?
Simply to help realtors and real estate agents make more sales and make the Legislature extremely happy to take in over a billion more in property tax revenue — so they’re going along with it, despite the fact that if Proposition 15 passes… as a sort of companion effort in unraveling commercial property tax relief — provided for in Prop 13.
It’s a nice little plan the real estate industry and the state politicians came up with. So Proposition 19 kills off the ability for Californians to avoid property tax reassessment at current high property tax rates —the parent to child exclusion or exemption so critical to the 1986 Proposition 58 property tax relief measure… The residential part of property tax relief in this state. Then Proposition 15 kills off the commercial property tax breaks for landlords and businesses — carving that out of Proposition 13, which create tax breaks for both residential and commercial property owners, as you probably know by now.
Before which, in the 1970s, elderly widows and retired veterans living on fixed incomes were being evicted tight and left because they couldn’t pay the outlandishly high property tax on their homes. And now the current California administration plus C.A.R. want to go back to those bad old days again? I suppose it’s in keeping with the heartless, cruel and incompetent Trump Administration policies. This business in California is right up there.
Middle Class to Become Working Poor Without Property Tax Relief
Everything in California goes up in price. Clothes stores and gas stations, dept. stores, food, autos, you name it, all rent store space from commercial landlords… if they start paying higher taxes, thanks to Prop 15, they go up in rent, and the commercial rental tenants raise their prices on all goods and services because they have no choice, to meet their rent hikes— and before you know it we have a major Recession in California.
Add that to residential home owners losing their one critical Proposition 13 property tax break, the ability to avoid property tax reassessment, killed by Proposition 19 — scouring from consumers what little cash they may have in the bank thanks to savings from Proposition 13… and now we have everyone going broke in the state. In the middle of the worst job loss, unemployment crisis since the Great Depression in 1929.
Killing Proposition 58 and the ability to borrow against trust loans, to buyout siblings’ share of inherited property, buying out a siblings’ share of a house, also called simply sibling to sibling property transfer, isn’t going to help the middle class or the wealthiest Californians at all. Just the tax man at the state level. And maybe some real estate agents. Destroying the Prop 13 parent to child exclusion, parent to child transfer rights, the right to transfer parents property taxes, when inheriting property taxes from a mom or dad… All that plus the right to keep parents property taxes makes California the luckiest state in the USA where property and property tax relief is concerned.
Apparently, C.A.R. is so dazzled by their opportunity to pull in more home sales, plus help state and local politicians and tax collectors generate a multi-billion-dollar tax revenue scam from property tax increases statewide — they don’t seem to be able to notice the obvious… that these tax measure, if they pass, will throw the entire middle class California economy into chaos, already in turmoil due to the Covid-19 health and unemployment crisis…
Forcing the Middle Class to Spend More in a Covid-19 Pandemic: with 6.7 Million California Workers Unemployed Plus Soaring Debt!
Again, as with Trump — let’s kill off health coverage for 40 million Americans in the middle of a Pandemic, as in the Affordable Care Act. And here we have — let’s raise property taxes on landlords and commercial property owners, with Proposition 15, so everyone’s rent will go up, and prices on all goods and services in the entire state will shoot sky-high, which is makes a lot of sense… make all middle class Californians, home owners and renters alike, go broke — while literally millions of Californians are unemployed as a result of the Covid-19 disaster. That makes a lot of sense, doesn’t it?
Listen, a surprise Proposition 15 “Split-Roll” property tax on business or commercial properties, and industrial facilities, was bad enough; However —
a) C.A.R. and the California Legislature piling an openly partisan last-minute anti property tax relief bill, Proposition 19, which basically kills the”parent to child exemption” which frees up a little cash for home owners—therefore making that disappear, for folks who are already struggling, makes very little sense.
b) Piling the unexpected Proposition 19 right on top of the Proposition 15 Split-Roll tax on commercial property owners and landlords, forcing both commercial and residential rentals to go up… Increasing the cost of virtually everything in California — meaning all goods and services — right in the middle of the worst health crisis this country has ever experienced, is impossible to justify and, frankly, difficult to even comprehend.
c) Lastly, on top of everything else — along with massive layoffs, at last count 6.7 million workers in California collecting unemployment checks, unable to work as their employer’s offices are closed or they themselves are forced to stay at home due to forced furloughs, typically at 50% salary level, or no compensation at all.
For those of you residing in California, with unemployment concerns; or for those of you who aren’t yet up to par on all of this info — read up on Proposition 19 and it’s 100% destructive effect on Proposition 58, at https://californiaproposition58.org/2020/09/17/vote-no-on-california-proposition-19/ Or go to https://cloanc.com/tag/proposition-13 at the famous Commercial Loan Corp where they provide trust loans with Proposition 58 benefits… And research Proposition 13 and Prop 58 tax relief at https://propertytaxtransfertrusts.com — an info blog. And after you do all that — sit back and think about what life might be like in California, the sunshine state; without genuine property tax relief to help middle class residents live a more comfortable, secure life.
If you’re a “patriotic Californian”… A home owner or commercial property owner — VOTE NO on Proposition 15 & Proposition 19 in Nov. And check into getting a loan from Commercial Loan Corp while you still can… You can review their offer at https://cloanc.com if you’re a trust beneficiary or heir to an estate and you’re in urgent need of need of funds; call: 1-877–464–1066