Property Tax Transfer Initiative; allows home-buyers who are age 55 or older or severely disabled to transfer their tax assessments, with a possible adjustment, 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 buyer’s number of moves.
The Libertarian Party of California recommends a “Yes” vote on Proposition 5.
Proposition 13 was originally passed so that homeowners that bought property at a lower price weren’t suddenly saddled with increased taxes as the property appreciated in value. Since then Proposition 60 was passed in 1986 which allows homeowners 55 and older to move to another property, as their needs change, at that same lower tax rates that Proposition 13 created, so long as the move is to a property of lesser or equal value, was in the same county and was limited to a one time more. Proposition 5 will expand the ability to people 55 or older or severely disabled to be able to take advantage of this benefit regardless of where they move within the state. This means many homeowners will finally be able to access the equity in their homes to purchase a replacement property, and maintain the low tax assessment they have enjoyed previously.