The 2020 realtor-organization-backed Prop 19 aims to reorganize the current guidelines on tax collection from deceased relative’s enterprises, but critics say families are not seeing the benefits.
Since Prop 19 passed in 2020, it has been slammed for “dramatically increasing property taxes,” and its vague language leaves room for overreach. Some argue despite its issues, Prop 19 is for a good cause, aiding in housing tax relief for “seniors, wildfire victims, and people with disabilities”. But critics are not easing up, claiming it removes constitutional propositions that protect in-family estate transfers.
Supporters argue that this Prop can aid seniors and the disabled who “feel trapped in homes they can’t maintain with too many stairs.” Additionally, the Prop claims to protect victims of wildfires by removing the expected tax hikes homeowners would face while relocating.
According to Cal Fire’s database, this could help save the victims of up to 11,116 damaged or destroyed structures from fires taking place in the 2020 season. The Prop works to recoup some of the lost tax dollars by closing “unfair tax loopholes used by east coast investors, celebrities and wealthy trust fund heirs,”
Alternatively, those who oppose Prop 19 argue that the new reforms apply tax hikes to inherited properties. According to the projections made by the Legislative Analyst’s Office, a non-partisan organization, these hikes could contribute to two billion additional dollars annually, leaving the pockets of California families.
Additionally, under the new tax code, the inherited property will be reassessed to market value and thus raise annual property tax to the cost at the time of inheritance.
Looking into those who funded Prop 19 could illuminate the potential vested interests of the donating parties. A combined total of 45.2 million dollars in donations were received between two realtor-driven organizations. In contrast, the opposition received only .005% of the donorship given by small independent organizations and individuals.
