Removes the following current requirements for homeowners who are over 55 years old or severely disabled to transfer their property tax base to a replacement residence: that replacement property be of equal or lesser value, replacement residence be in specific county, and the transfer occur only once. Removes similar replacement-value and location requirements on transfers for contaminated or disaster-destroyed property. Requires adjustments to the replacement property's tax base, based on the new property's value. Fiscal impact: Schools and other local governments each probably would lose over $100 million in annual property tax revenue in the first few years, growing over time to about $1 billion per year (in today's dollars). Similar increase in state costs to backfill school property tax losses.
Popular Vote Results
Y:4813251; A:40.2; N:7152993; B:59.8
Initiative Constitutional Amendment and Statute
Code Sections Affected
California Constitution and amends and adds sections to the Revenue and Taxation Code
PENNY LILBURN, Executive Director, Highland Senior Center, KYLE MILES, Commander, AMVETS Department of California, SUSAN CHANDLER, President, Californians for Disability Rights, Inc.
CAROL KIM, Board Member, Middle Class Taxpayers Association, SHAMUS ROLLER, Executive Director, National Housing Law Project, GARY PASSMORE, President, Congress of California Seniors
Rebuttal Against Author
MARILYN MARKHAM, Board Member, California Senior Advocates League, TOM CAMPBELL, Ph.D., Professor of Economics, MICHAEL C. GENEST, Former Director, California Department of Finance
Changes Requirements for Certain Property Owners to Transfer Their Property Tax Base to Replacement Property. Initiative Constitutional Amendment and Statute. California Proposition 5 (2018).