Vote Smart's Synopsis:

Vote to amend and pass a constitutional amendment that establishes housing relief and tax savings for seniors, the severely disabled, families, and victims of wildfire or natural disasters.

Highlights:

• Limits property tax increases on primary residences by removing unfair location restrictions on homeowners who are severely disabled, victims of wildfires or other natural disasters, or seniors over 55 years of age that need to move closer to family or medical care, downsize, find a home that better fits their needs, or replace a damaged home and limit damage from wildfires on homes through dedicated funding for fire protection and emergency response (Sec. 2.1).

• Limits property tax increases on family homes used as a primary residence by protecting the right of parents and grandparents to pass on their family home to their children and grandchildren for continued use as a primary residence (Sec. 2.1) 

• Prohibits unfair tax loopholes used by East Coast investors, celebrities, wealthy non-California residents, and trust fund heirs to avoid paying a fair share of property taxes on vacation homes, income properties, and beachfront rentals they own in California (Sec. 2.1).

• Authorizes an owner of a primary residence who is over 55 years of age, severely disabled, or a victim of a wildfire or natural disaster to transfer the taxable value of their primary residence to a replacement primary residence located anywhere in this state, regardless of the location or value of the replacement primary residence, that is purchased or newly constructed as that person’s principal residence within 2 years of the sale of the original primary residence (Sec. 2.1).

• Requires the new taxable value of the family home of a transferee to be the sum of both of the following (Sec. 2.1):

• The taxable value of the family home, subject to adjustment, determined as of the date immediately before the date of the purchase by, or transfer to, the transferee; and

• The applicable of the following amounts:

• If the assessed value of the family home upon purchase by, or transfer to, the transferee is less than the sum of the taxable value described in the previous sub-highlight plus $1 million, then $0; or

• If the assessed value of the family home upon purchase by, or transfer to, the transferee is equal to or more than the sum of the taxable value described in the previous sub-highlight plus $1 million, an amount equal to the assessed value of the family home upon purchase by, or transfer to, the transferee, minus the sum of the taxable value described in the previous sub-highlight and $1 million.

• Establishes the California Fire Response Fund within the State Treasury to expand fire suppression staffing (Sec. 2.2).

• Establishes the County Revenue Protection Fund within the State Treasury for the purpose of reimbursing eligible local agencies that incur a negative gain, and pay the administrative costs of the California Department of Tax and Fee Administration (Sec. 2.2).

• Requires the California Department of Tax and Fee Administration to determine each eligible local agency’s aggregate gain every three years and provide reimbursement to each eligible local agency with a negative gain from the money in the County Revenue Protection Fund equal to that amount (Sec. 2.3).

Full Bill Text