Senior Senate Federal Proposal

July 25, 2009

SENIOR SENATE FEDERAL PROPOSAL NO. 4
INTRODUCED BY SENIOR SENATOR MACK

LEGISLATIVE COUNSEL’S DIGEST
SFP 4: TAXATION: SALE OF PRINCIPAL RESIDENCE.

UNDER EXISTING LAW, CAPITAL GAINS TAXES ARE IMPOSED UPON THE SALE OF CAPITAL ASSETS.
THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND
THE PRESIDENT TO ENACT LEGISLATION THAT WOULD ELIMINATE CAPITAL GAINS TAXES ON THE SALE OF A PRINCIPAL RESIDENCE
BY A SENIOR CITIZEN OVER 65 YEARS OF AGE.
VOTE: MAJORITY. Read the rest of this entry »


Senior Senate State Proposal

July 25, 2009

SENIOR SENATE PROPOSAL NO. 6
INTRODUCED BY SENIOR SENATOR MACK

LEGISLATIVE COUNSEL’S DIGEST
SP 6: RELATING TO TAXATION.

THE CALIFORNIA CONSTITUTION GENERALLY LIMITS AD VALOREM TAXES ON REAL PROPERTY TO 1 PERCENT OF THE FULL CASH VALUE OF THAT PROPERTY. FOR PURPOSES OF THIS LIMITATION, “FULL CASH VALUE” IS DEFINED AS THE ASSESSOR’S VALUATION OF REAL PROPERTY AS SHOWN ON THE 1975-76 TAX
BILL UNDER “FULL CASH VALUE” OR, THEREAFTER, THE APPRAISED VALUE OF THAT REAL PROPERTY WHEN PURCHASED, NEWLY CONSTRUCTED, OR A CHANGE IN OWNERSHIP HAS OCCURRED.
EXISTING INCOME LAW IMPOSES CAPITAL GAINS TAXES UPON THE SALE OF CAPITAL ASSETS.
THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD ALLOW SENIORS OVER 65 YEARS OF AGE TO MOVE ANYWHERE IN CALIFORNIA WITHOUT PAYING INCREASED PROPERTY TAXES AS LONG AS THEY ARE MOVING TO A LESS EXPENSIVE RESIDENCE, AND TO ELIMINATE CAPITAL GAINS TAXES ON THE SALE OF THEIR RESIDENCE. Read the rest of this entry »


Two Interesting groups

July 6, 2009

We are working with 2 interesting groups: http://www.4csl.org/ California Senior Legislature and http://www.cotce.ca.gov/. We are presenting at the last Commission meeting on July 16th in San Francisco. Also, Joe Coto’s colleague Lorraine Guerin is having a financial analyst look into the numbers our proposals might generate.

Jim Hall


Unions vs Taxpayers

July 6, 2009

Hello all:

Check out Wall Street Journal Opinion May 14th, 2009: Unions vs. Taxpayers by Steve Malanga: http://online.wsj.com/article/SB124227027965718333.html It might influence your vote on the initiative next week.

Regards,

Jim Hall


Prop 13 reassessment every 25 years won’t work

July 6, 2009

There are too many homeowners that currently benefit from Prop 13 to even think about an initiative to re-assess home and commercial property every twenty-five years. #1 A better and current approach would be to allow seniors over 65 to move anywhere in California without paying increased property taxes, as long as they are moving to a less expensive residence. #2 Prop 13 protections should be gradually removed from commercial and industrial property, increasing funding for schools and stopping the property tax burden from shifting to residences. #3 Capital gains should be eliminated for sale of a home by seniors over 65, to be replaced by a current taxpayer to stimulate tax rolls. This would free-up millions, possibly billions of capital for seniors that may have taken a hit in their retirement resources.

Regards,

James Hall


Sf Tax Proposals

July 6, 2009

TO:

Marisa Lagos – SF Chronicle Writer

Supervisor John Avalos

David Chiu – Board President

Chamber of Commerce President Steve Falk

Supervisor Sean Elsbernd

Subject: S.F. looking at tax proposals for ballot article by SF Chronicle Writer Marisa Lagos

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/10/BAK6183QK2.DTL

Parcel tax, vehicle fee are among proposals. ‘Parcel tax and sales tax would eventually expire’. This means they are not a structural long-term increase in revenue.

Does it make sense to analyze capital gain of 15% Federal and 9.3% state when selling homes that have appreciated more than the current $250,000 per person exemption? Despite the very severe downturn in the home real estate market, there are 3 million homes in the state owned by people over 60. How many have appreciated more than the $250,000 exemption established in 1998 is unknown.

Check out our Aug. 30th, 2008 piece originally published in the Mercury News which is attached. Our blog is https://jameshall.wordpress.com/. Capital gain over 24% is definitely locking seniors in their homes that pay low property taxes that could be replaced by a current taxpayer.

We have submitted proposed legislation through senior Senator Anne Mack. Hopefully, one federal and state legislator will pick up on it. http://www.4csl.org/

Regards,

Jim Hall


Prop 13 revisited

July 6, 2009

Hello all:

For those of you that are interested, the SF Chronicle Monday June 29th debates Prop 13 pretty thoroughly. Here are the article links: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/29/MNUJ18EHVH.DTL&type=politics&tsp=1 and http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/29/MN8B18EL7H.DTL&type=politics. Authors Joe Garofoli and Michael Cabanatuan debate the crisis and the push by San Francisco assessors leading attempt to change the commercial side of Prop 13’s restrictions. …no mention of capital gains nor the ‘Step-Up-Basis’. We sent Mr. Garofoli our Aug. 30th, 2009 piece that was published in the Mercury News. It can be seen on our blog: https://jameshall.wordpress.com.

Jim Hall