Just recently the Board of Directors of the California Association of REALTORS® took a bold step. They authorized a multi-million dollar effort to sponsor a ballot initiative that will allow all homeowners over 55 to transfer their property tax base anywhere in the State each time they move without a requirement to purchase a lower priced home. (Higher priced homes will have a blended rate based on how much new value was added.)
Background: Current law allows a one-time transfer of property tax base rate for homeowners over 55 if they move within their county or into one of the 11 of 58 counties that approved Proposition 90. Many seniors are retiring in place when they would rather move closer to children and grandchildren, move to a single story home, or move to a nicer location. A recent study has shown that over 75 percent of senior homeowners have not moved this century.
Results: The State Legislative Analyst office has estimated that the passing of this initiative would result in an additional 43,000 homes being transferred in California each year. That is an increase in statewide inventory of over 10%. This will bring to California homeowners the ability to live in the community and type of home that makes the most sense for them.
Photo courtesy of Dillon Scheps.
