California Property Tax Transfer Initiative (2020)
| California Property Tax Transfer Initiative | |
|---|---|
 | |
| Election date November 3, 2020 | |
| Topic Taxes | |
| Status Not on the ballot | |
| Type Constitutional amendment | Origin Citizens |
The California Property Tax Transfer Initiative (#18-0006) was not on the ballot in California as a combined initiated constitutional amendment and state statute on November 3, 2020.
The ballot initiative would have amended Proposition 13 (1978) to allow homebuyers who are age 55 or older or severely disabled to transfer the tax-assessed value from their prior home to their new home, no matter (a) the new home's market value; (b) the new home's location in the state; or (c) the number of moves. The ballot initiative would have also allowed the transfer of tax-assessed values from a prior house to a new house for contaminated or disaster-destroyed properties, no matter the new home's market value or the new home's location in the state.[1]
The ballot initiative would have allowed reassessments on inherited property used to produce income and when a corporation acquires a certain percentage of stock in a property.[1]
Text of measure
Ballot title
The official ballot title was as follows:[2]
| “ |
Changes Requirements for Certain Property Owners When Transferring Their Property Tax Base to Replacement Property. Initiative Constitutional Amendment and Statute.[3] |
” |
Petition summary
The summary provided for inclusion on signature petition sheets was as follows:[2]
| “ |
Removes the following requirements for homeowners who are over 55 or severely disabled to transfer property tax base to replacement residence: that replacement property be of equal or lesser value; that replacement property be in an eligible county; and that transfer occur only once. Removes location and replacement-value requirements on transfers of contaminated or disaster-destroyed property. Adjusts replacement property’s tax base, based on market value. Limits tax benefit for eligible familial transfers. Expands circumstances triggering corporate property reassessment.[3] |
” |
Fiscal impact
The fiscal impact statement was as follows:[2]
| “ |
Local governments and schools each could gain or lose low tens of millions of dollars of property tax revenue per year, likely growing over time. State school spending would increase (decrease) by an amount similar to school property tax losses (gains). Other local and state revenues each could increase by tens of millions of dollars per year. County property tax administration costs likely would increase by tens of millions of dollars per year.[3] |
” |
Full text
The full text of the measure is available here.
Sponsors
The California Association of Realtors (CAR) sponsored the ballot initiative. CAR President Steve White said, "Filing this new initiative will allow C.A.R. – in the event the 'moving penalty' is not eliminated this November [2018] – to immediately begin gathering signatures to qualify the new initiative for the November 2020 ballot and reinforce our commitment to making tax fairness a reality. This new initiative will provide for property tax base portability, reform the intergenerational transfer laws, and address the true 'split roll' problem – corporations gaming the current property tax reassessment system. And, most significantly, it will raise money for schools and local governments."[4]
Path to the ballot
In California, the number of signatures required for an initiated constitutional amendment is equal to 8 percent of the votes cast in the preceding gubernatorial election. Petitions are allowed to circulate for 180 days from the date the attorney general prepares the petition language. Signatures need to be certified at least 131 days before the general election. As the verification process can take multiple months, the secretary of state provides suggested deadlines for ballot initiatives.
The requirements to get a combined initiated constitutional amendment and state statute, filed before the 2018 general election, certified for the 2020 ballot:
- Signatures: 585,407 valid signatures were required.
- Deadline: The deadline for signature verification will be in late June 2020.
Signatures are first filed with local election officials, who determine the total number of signatures submitted. If the total number is equal to at least 100 percent of the required signatures, then local election officials perform a random check of signatures submitted in their counties. If the random sample estimates that more than 110 percent of the required number of signatures are valid, the initiative is eligible for the ballot. If the random sample estimates that between 95 and 110 percent of the required number of signatures are valid, a full check of signatures is done to determine the total number of valid signatures. If less than 95 percent are estimated to be valid, the initiative does not make the ballot.
Initiative #18-0006
Proponents filed the ballot initiative on August 3, 2018.[1] The Attorney General of California issued ballot language for the initiative on October 10, 2018, allowing a signature drive to begin. The signature deadline for the initiative was April 17, 2019. Signatures were not filed for the initiative.
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 California Secretary of State, "Initiative 18-0006," August 3, 2018
- ↑ 2.0 2.1 2.2 California Secretary of State, "Initiatives and Referenda Cleared for Circulation," accessed September 10, 2018
- ↑ 3.0 3.1 3.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ PR Newswire, "California REALTORS® file revised ballot initiative to eliminate moving penalty on seniors, disabled and unlock housing market," August 7, 2018
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