Petition to Sign to Reverse Death Tax - Howard Jarvis Association

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StarmanMBA

Active member
The slippery California politicians added a few sentences to a law about to be passed which nullified the inheritance of parents' protected property tax rate, subject only to annual 2% increase. Howard Jarvis Association needs another million signatures to put this on the ballot November 2024.

Print an extra copy or two and give it to your neighbor if you agree.

REPEAL THE DEATH TAX

https://reinstate58.hjta.org/wp-con...ctions-and-Top-Funders-Sheet-November2023.pdf
 
I am a bit confused. Prop 19 allows the transferee in a parent-child transfer of a single family residence to file for a reassessment exclusion. It is subject to a $1 million limit in property value addition and the transferee has to make this residence their personal residence within a year. Assuming these conditions are met, the transferee will inherit the parent's property tax value.

Assuming the transferee documents the market value of the property at time of death, the IRS allows a step up in basis to market value. In other words, sell the inherited property shortly after death and pay no capital gains tax regardless of how low the original purchase price. Frankly, I don't see why one should benefit from a step up to market value for income tax purposes but also be allowed to retain a low Prop 13 property tax value. Seems inconsistent.
 
Prop 13 was originally designed to help long time homeowners stay in their existing homes. California had experienced significant property price appreciation and some seniors were struggling to pay the property taxes on their highly appreciated homes. Examples were retired engineers who bought in Huntington and Newport really cheap but whose home appreciated significantly. Prop 13 was never designed to help the heirs of these homeowners.
 
irvine buyer said:
Prop 13 was originally designed to help long time homeowners stay in their existing homes. California had experienced significant property price appreciation and some seniors were struggling to pay the property taxes on their highly appreciated homes. Examples were retired engineers who bought in Huntington and Newport really cheap but whose home appreciated significantly. Prop 13 was never designed to help the heirs of these homeowners.
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As it should remain. If you’re a kid and you already have a home passed to you, you are ahead in life. Use the cash from the sale of the home and call it a day.
 
irvine buyer said:
Prop 13 was originally designed to help long time homeowners stay in their existing homes. California had experienced significant property price appreciation and some seniors were struggling to pay the property taxes on their highly appreciated homes. Examples were retired engineers who bought in Huntington and Newport really cheap but whose home appreciated significantly. Prop 13 was never designed to help the heirs of these homeowners.
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California's confiscatory tax rates, from sales taxes, to state income taxes, to gas taxes to property taxes were never designed to help anyone except the bureaucrats who want to take more of your money to give away to their overwhelmingly Democrat/socialist constituents.

Anything to help reverse this godawful state money grab.

As the Jarvis group says, the change was underhandedly added on to a different bill, wink, nudge.
That's how the California state cowards operate.
 
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