Genuine, Not Fake, Property Tax Relief in California and All Across America
The great President Abe Lincoln once said, “You can fool some of the people all of the time, and all of the people some of the time… But you can’t fool all the people all the time…” Still makes sense today.
Still nibbling around the edges, trying to appear to be doing something to help Californians financially in the midst of a relentless Pandemic, without in fact really doing anything at all… California Governor Gavin Newsom and the CA Legislature is still proposing cheap, well publicized yet largely ineffective tax measures to help struggling middle class residents and beleaguered working families — calling it “property tax relief’, when it is not “tax relief” at all… by any stretch of the imagination.
This is simply a clever move to look like tax relief, but in fact only pushing tax payment deadlines off for a few weeks or months. But not really helping folks at all — such as genuinely minimizing tax payments this year for example, or better yet, simply cancelling property taxes this year, for instance, when so many people are doing so poorly.
It’s certainly nice to give employers a pause, or a small tax-credit perhaps. But let’s face it, it’s like a Republican proposed $600 “stimulus check” —when unfortunately, as President Biden stated, 600 bucks isn’t going to stimulate much of anything. And this is what we’re seeing in California, and many states — a clever photo-op to look good, like something is really being done to help residents in a very,. very difficult time. President Biden and his team were the first to actually take a risk, step out of the box, and really do something to help people in a meaningful and effective way. Hey, you can’t fool all those people out there all the time with phony trumpy photo-ops..
So it’s swell of the California Governor to let resident companies and families pay property taxes a little late, or to propose an almost invisible tax-credit, in a Pandemic where millions of people are unemployed and under-employed with mouths to feed and bills to pay. But how about just not collecting property taxes at all for one measly year — as long as the pandemic is decimating our economy. Something with a material, profound affect, not just nibbling weakly around the edges so we can do a photo-op around it.
However, California still does have more property tax relief options than any state in the union, for middle class people. The rich have countless tax cuts and property tax breaks. The middle classes, almost nothing. Anyway, we are moving well on a vaccine. Fine. But since we’re talking about if the Governor of California and his team really want to move the needle for middle class residents, and genuinely help working families survive the disastrous pandemic economic effect — why don’t they repeal the equally disastrous tax hike Proposition 19, which limits parent to child transfer rights… As the pandemic is leveling the California economy — the realtor community and the powers that be are promoting this foolish Proposition 19 tax hike in 2021 — watering down the parent to child exclusion from being reassessed at current property tax rates… Limiting every middle class homeowners’ ability to avoid property tax reassessment; weakening their ability to transfer parents property taxes, as they are inheriting property taxes from a parent they get only 12-months to move in, and only as a primary resident, not more ability to avoid property tax reassessment for investment properties.
So if you miss your 12-month deadline — prepare to pay extra dollars at full freight… meaning thousands of dollars, probably tens of thousands. The right to keep parents property taxes, and transfer parents property taxes upon inheriting property taxes at a low base rate is still all there, as per Proposition 58 and Prop 13 — but the walls appear to be closing in on us fast! I’m reading up on these property tax breaks and complex processes at the official CA State Board of Equalization Website, at https://www.boe.ca.gov — and researching tax relief on property tax blogs like https://propertytaxnews.org and websites focused on loans to irrevocable trusts, making it possible to lock in a low Proposition 13 property tax base, while buying out co-beneficiaries that have inherited the same property as me but want to sell their property shares…
Another option we have in California that works with Proposition 58, found at websites like https://cloanc.com/tag/california-prop-58 California business and residential property owners, in addition to having the right to keep parents property taxes, and transfer parents property taxes upon inheriting property, can still continue inheriting property taxes at a 2% maximum tax rate as long as it happens within a year upon inheriting, and it’s not an investment property, just a primary residence — maintaining a property tax transfer forever as a parent to child transfer, or parent to child exclusion as the lawyers call it; as long as all requirements for Proposition 58 have been met.
It’s well worth exploring, for politicians to try a few new ideas, to take a few risks to help struggling residents. It’s not just wealthy folks who deserve tax loopholes, and property tax breaks. The middle class and blue collar working families deserve this as well — even more so! So it’s time to start emailing and calling our representatives and demand a few tax breaks or property tax relief bills come our way… Now.