Letter writer Clay Nolde, in commenting on a recent Gasparotti opinion piece mentions that Proposition 13 has cost California schools and municipalities “billions of dollars” over the years.
Since Prop. 13 was enacted, the state has replaced this loss of funds from Prop. 13 with increases in income, sales, and gas taxes. These California taxes are currently the highest in the nation. Contrary to public opinion, California does have high property taxes even though Prop. 13 is in effect, we are currently number 18. If not for Prop. 13, we would most likely be first in that category as well.
In 2020, there will be a ballot initiative to remove commercial property from Proposition 13, backed by teachers unions, public employees and their unions to shore up their pensions. In 2012, voters passed Prop. 30, greatly increasing the income tax.
Of the $7 billion collected, $3 billion will go to teachers’ pensions, and an additional $1.5 billion to public employees and their unions. Worse with Prop. 55, the income tax increases are permanent until 2030. Not only did the public get fooled, they got fooled twice.
Certainly the nexus of property taxes supporting schools is more direct than using income tax and general fund dollars to support schools. So as a matter of public policy, it would make sense to cut income and sales taxes to make up for the additional revenue raised if Proposition 13 were modified by deleting commercial property. Without this, changes to Prop. 13 are just another tax, that hopefully voters will recognize.
George Orff, Laguna Beach
Well, now that we’re past 2019 and all the guess work… Let’s say our thanks that Prop 13 wasn’t killed by Proposition 15, and let’ make sure if it comes back in another form — let’s put it to sleep once and for all. Property tax relief will certainly not be the same after Feb 15, 2021, however we still thankfully have the “Parent to Child Exclusion”, or “Parent to Child Exemption “ as attorneys and realtors like to call it… the critical Proposition 58 tax break that Proposition 19 waters down somewhat – yet we still have the crucial exclusion, if we’re inheriting property from a parent and are moving into that inherited property within 12-months, as a primary residence, so we can avoid property tax reassessment at current market rates. Despite Prop 19, we still have a few other viable property tax relief options… such as the long utilized inheritance advance assignments if we need fast cash and we’re inheriting liquid assets and/or real property and we happen to be a probate heir or a trust beneficiary – we can get inheritance funding cash from firms like http://www.inheritancefunding.com
And we can always look to property tax appeals, as long as we have the right firm with a high success rate, with numerous realistic property tax reduction solutions & established programs, such as firms like https://paramountpropertytaxappeal.com, actually offering a free tax appeal & tax reduction evaluation to property owners. Or, strictly for beneficiaries – if inheriting a home, we can get approved to take advantage of Proposition 58, with a large six-figure Prop 19 trust loan, typically to buyout co-beneficiaries who are trying to sell their shares in the same inherited home – if we’re smart, from a reliable trust lender like https://cloanc.com – who is also offering a free consultation, and will help us nail down a low long-term Proposition 13 property tax base – with a property tax transfer from a parent, if we want to transfer parents property taxes when inheriting property taxes… and keep parents’ property taxes for the long haul, as we could prior to Prop 19. And it’s a good idea to verify all this at info-blogs like https://propertytaxtransfertrusts.com
So yes we do have a few reliable, lucrative options still… in a post Prop 19 California. Until they repeal Proposition 19, once California property owners realize it‘s not what they were told it was! Or it goes the other way – and they repeal Prop 13 and install Proposition 15 or something like it… Let’s hope not. Let’s hope we are able to return things back to where property tax relief was before Proposition 19 entered the picture in Nov 2020.