February 14, 2012
Proposition 13 needs to be re-evaluated
A direct frontal attack to change Prop. 13 (Editorial, Feb. 10) requiring a two-thirds vote won’t work. There are too many home and commercial property owners benefiting from a very low property tax base. The unfair federal and state “step-up basis” benefiting a surviving spouse versus couples living close needs to be addressed separately from Prop. 13. There are millions of couples over 65 and much later in life who won’t sell because the capital gains tax exemption of $250,000 per person is too low. The lock-in effort slows middle to high-end properties for sale, thereby creating a huge restriction on increasing property taxes both on home sales and commercial property. It would require federal legislation and not the state two-thirds to change Prop. 13.
Research shows that when the exemption increased from $125,000 per-person to $250,000 (1992) sales increased substantially in that bracket.
My recommendation is an end-run around Prop 13 to increase property taxes.
This just appeared in the Mercury News: http://www.mercurynews.com/opinion/ci_19940319
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 »
October 18, 2008
Here is a link to our comments that were published in the Mercury News letters section about how Senator McCain is right about lowering capital gains, even in a down market.
June 12, 2008
We’ve lived in a middle upper class Southbay neighborhood for 43 years. The street has 10 homes which ends in a cul-de-sac. Five are original Prop 13 beneficiaries. A neighbor passed away several years ago and his wife sold their home one year later. Two of the remaining Prop 13 beneficiaries are long-term widows. The other three are surviving couples all in their late 70’s and early 80’s. The other five homes have turned ownership several times, but have stayed steady for the last 5 to 10 years. Read the rest of this entry »