Blog Post < Previous | Next >
pinterest.com
You want to pass on your home to your children. Repeal Prop 19!
Prop 19 changed the assessed value of inherited homes. Before Prop 19, children would inherit their parents' home at their respective assessed value. After Prop 19, the new assessed value equals the maximum of the original assessed value or the current market value minus $1 million.
Let's take an example where you inherit your parents' home.
The home has an assessed value of $500,000 and a current market value of $2,000,000.
Under Prop 19, the home's new assessed value is:
$2,000,000 - $1,000,000 = $1,000,000
Your home assessed value at $1,000,000 is now twice as high under Prop 19 as it would have been before Prop 19 at $500,000. As a result, your property taxes will probably just about double too.
I ran a few scenarios to explore the impact of Prop 19.
The table above shows how under Prop 19, the new assessed value can readily double or even quadruple or more vs the old assessed value.
Prop 19 will eventually affect all homeowners
Many homeowners outside urban areas may feel that this does not affect them as their homes' assessed value is under $1,000,000. That is a shortsighted perspective. If you are a homeowner with an expected remaining lifespan of one or more decades, even modest yearly appreciation in homes' market values translates into material home market value appreciation over time.
As shown in the table below, it does not take that long and that much in yearly appreciation for a home market value to increase by 50% or more.
Given the above, one can anticipate that Prop 19 would affect the vast majority of homeowners within less than two decades.
Fortunately, there is something we can do about this. And, that is to sign an Initiative to repeal Prop 19 that would be placed on the November 24 Ballot. See the attached "Repeal Prop 19 Form."
Instructions regarding the Repeal Prop 19 Form:
1) Time is of the essence. The Howard Jarvis Taxpayers Association needs 1.2 million signatures for this Initiative to qualify for the November 2024 Ballot.
2) You need to sign the actual form to be sent (the last page) twice. The first time as "signer", and the second time as a "Circulator."
3) If a second "signer" signs the form (there is space for that), you need only one of the two signers to also sign as Circulator.
I suggest you quickly read the instructions to make sure you signed the form appropriately.
THE END