Sen. Kelly Seyarto. (Photo: courtesy of Alex Bello, Senate Republican Caucus)
Slay the Death Tax
HJTA needs about 1.2 million signatures by February 5th to qualify the Repeal the Death Tax Act for next November’s ballot
By Katy Grimes, January 16, 2024 4:19 pm
Last week when Gov. Gavin Newsom was sharing his proposed 2024-2025 budget, he insisted that he was opposed to a proposed wealth tax. And sure enough, Assembly Bill 259 by Assemblyman Alex Lee (D-Palo Alto), which will impose an annual “worldwide net worth” tax of 1 percent on net worth above $50 million, rising to 1.5 percent on net worth over $1.0 billion, was killed in committee that afternoon.
However, the governor has been mum about another type of wealth tax – California’s sneaky Death Tax, which adds a new tax on property inherited by a family member, which was already was taxed over the years of ownership.
In 2020, Proposition 19 resurrected the Death Tax on families whose property is left to loved ones when they die, putting their homes, property and businesses at significant risk. While the initiative was cleverly disguised as a benefit for the elderly and disabled communities, Proposition 19 caused far more harm than good.
In May, Senator Kelly Seyarto (R-Murrieta) introduced Senate Constitutional Amendment 4, to restore taxpayers’ property rights by reversing the state’s “death tax” written into in Proposition 19. Deviously titled “the Property Tax Transfers, Exemptions, and Revenue for Wildfire Agencies and Counties Amendment,”
SCA 4 would have reversed one of the largest property tax increases in state history, a little-noticed provision of Proposition 19 that revoked the ability of families and parents to pass property to their children without any change to the property tax bill, according to the Howard Jarvis Taxpayers Association.
However, Democrats killed Seyarto’s SCA 4 in a legislative committee.
I remember when the Death Tax was first slayed.
“It was 1986 when the parent-child exclusion from reassessment was first added to the state constitution,” Susan Shelly recently wrote. “A growing number of Californians were angry to discover that state law treated death and inheritance as a “change of ownership” under Prop. 13, triggering reassessment to current market value just as if it was a sale. The legislature proposed a constitutional amendment that would allow parent-child transfers of a home and a limited amount of other property, such as a small business or a rental property, without reassessment.”
“The parent-child transfer protection passed by a unanimous vote in both houses of the legislature, and then was approved by 75% of voters statewide.”
Howard Jarvis Taxpayers Association elaborates on how Proposition 19 hurts taxpayers:
Proposition 19, had two main elements. The first was expanded “portability” of base-year property taxes. Homeowners who are 55 years of age or older, who are victims of a wildfire, or who are disabled may now move to a replacement home anywhere in the state, of any value, and take the base-year property tax assessment of the old home with them to a new home up to three times.
Now to the other part of Proposition 19. Previously under the state constitution, property transfers between parents and children, and sometimes grandparents and grandchildren, were excluded from reassessment. These family members could transfer a home of any value and up to $1 million of assessed value of other property, such as a small business property, a vacation cabin, or a rental property, without any increase in the property tax bill. This taxpayer protection was added to the state constitution in 1986 by Proposition 58 (parents and children) and in 1996 by Proposition 193 (grandparents and grandchildren) with overwhelming public support.
Proposition 58 was approved by more than 75% of California voters, and Proposition 193 was approved by nearly the same margin. Now, these taxpayer protections are gone.
Proposition 19 has replaced 58 and 193 with a very narrow exclusion for family transfers of property. Only a principal residence that the inheriting child occupies as his or her permanent primary residence is eligible for an exclusion from reassessment. Unless the new owner can move in within one year, the property is reassessed to market value. Business properties and rental properties lose the protection entirely.
So, what can be done?
Susan Shelly continues, “the Howard Jarvis Taxpayers Association, where I am on staff as VP of Communications, is collecting signatures to put an initiative on the ballot that would repeal the tax increase that was hidden in Prop. 19, without touching the other provisions in it. The official petition is available at RepealTheDeathTax.com and can be downloaded and printed on one sheet of ordinary letter-size paper. This enables instant distribution of the petition throughout the state. Theoretically, a million people could download the petition at the same time, fill it out and sign it, and have one other registered voter in the household also sign it.”
It’s easy. Click on RepealTheDeathTax.com and/or
Click here to DOWNLOAD the official petition RIGHT NOW
RepealTheDeathTax.com has more details HERE:
Please note: You must print and sign the petition with paper and ink. It’s not electronic.
Follow the easy instructions. And please note:
DEADLINE EXTENDED! Return signed petitions to HJTA postmarked by FEBRUARY 5
Download the official, legal petition to put the REPEAL THE DEATH TAX initiative on the November 2024 ballot.
Complete instructions are included in the pdf file.
Get your petition in the mail ASAP – before February 5th.
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March 26, 2023 -
Thanks very much for this story and for making it so easy to add our names to the petition!
Thanks for this article. The Board of Realtors was despicable in putting prop 19 on the ballot
They callously threw those who wanted to stay in homes, AND ESPECIALLY FARMS AND RANCHES, under the bus in favor of those Choosing to move. And the ballot summary was deliberately misleading. I do wish Howard Jarvis Taxpayers Association would keep family agricultural in mind.
Yes, it was the California Association of Realtors who did this. All for greed. All to drive more sales transactions and more commissions to themselves.
They convinced Gavin Newsom to get behind Prop 19 & support it. Seemingly in return, the Realtors gave Gavin Newsom $1.5M to fight his recall.
Let every realtor you know that you know what they did. The Realtors want a monopoly on all real estate transactions so they can extract their 6% of homeowner’s equity for themselves after doing a few hours of work.
Its time for ‘We the People’ to rise up and take our government back from special interest groups like the Realtors!
Please don’t lump realtors in with what their California Assn. of Realtors does. I do not support them and do not give them any money for political purposes. I have been a realtor for 38 years and I am a conservative.
So many Californians don’t realize how Prop 19 drastically changed property tax law, and that their children are not protected from Prop 19 by Estate Plans, Trusts or Deeds. Rents are rising, families are being forced to sell and small businesses are being forced to close. One man had to raise rents by $1,300 when he inherited a small apartment building just to cover the EXTRA Prop 19 Taxes. All this will fuel homelessess which Californian Taxes then have to fund! THIS IS OUR CHANCE TO GET OUR RIGHTS BACK. FIX PROP 19! #FixProp19
Thanks for this article. The Board of Realtors was despicable in putting prop 19 on the ballot
They callously threw those who desperately want to stay in their homes, farms, and ranches under the bus in favor of those Choosing to move. And the ballot summary was deliberately misleading. I do wish Howard Jarvis Taxpayers Association would keep family agricultural in mind.
It was not the board of realtors who put this on the ballot! IT was the California Association of Realtors that did this.I do not support their political agenda, I have been a realtor for 38 years and am a Conservative. I ‘m helping get the word out and getting people to sign the petition.
Thank you Shirley for supporting our campaign. Many realtors are supporting us and are applauded that they were not aware of CAR’s true agenda.
Thanks for this article. The Board of Realtors was despicable in putting prop 19 on the ballot.
They callously threw those who desperately want to stay in their homes, farms, and ranches under the bus in favor of those Choosing to move for more commissions. The ballot summary was deliberately misleading. I would like Howard Jarvis Taxpayers Association and voters to keep family agricultural in mind. Family farms, especially near urban areas, could have property taxes increase far above the entire income from the property. Many of the farm “children” are now in their 50’s and 60’s and have grown up and lived their entire life on a farm property and would be heartbroken over losing the property. Farmers list government regulations as a chief source of stress, and have a higher suicide rate. Government not allowing removal and even releasing wolves that were already known to kill livestock near them is an extreme example.
It amazes me how few Californians realize how Proposition 19 has drastically changed property inheritance with repect to taxes. Rents are rising, families are being forced to sell, and long-standing cherished small businessess forced to close. One man had to raise monthly rents by $1,300 just to cover Prop 19 extra taxes! What renters can afford that? And to top it off, Assessors have much more work, COSTS and delays because implementing Prop 19 is a nightmare. Sign the petition to get our rights back. Voters: decide beased on facts not deception!
Prop 19 is the biggest tax increase in California! It impacts not only the home owners and business owners inheriting family properties. Renters are also impacted through increased rent due to increased property taxes. Let’s #FixProp19 by signing the petition NOW! Download. at RepealTheDeathTax.com, print, sign and mail back by 2/5/24.
Prop 19 has become our worst nightmare. This deceptive initiative was put on the ballot by a special vote from our legislatures. When 45 million dollars was invested in advertising. Many Californians cast their vote based on emotion “helping wildfire victims, and disabled seniors. Does anyone recall any mention that our constitutional rights will be taken away? I’ve spoken to many victims of Prop 19 and they are ANGRY. TOTAL DECEPTION.
The majority of our legislatures want more and more tax dollars and it is still never enough. We need to Fix Prop now
Ass. reassesed our home before we even buried parent in 2023. They laughed at us even though that is our family home and farm. Over 60 and unwell, our family can’t even transfer low property tax to downsize because it was reassesed already there is no low base value left to transfer. That is circular reasoning right there in the same Prop 19. If there are 2 properties or more of any kind 2 condos 2 homes and more in a trust one child one is getting everything and the other us getting taxed out out of CA because the parent can only claim one homestead. As if there is not enough problems in mini and full probate. Prop 19 is dividing families creating homelessness.
If you think this is OK check to see if you could afford to be reassassed to today’s market values because your parent is dying and there are more than child and one residential homes. We worked and lived in our home paid mortgage ins and property tax for decades only to be reassessed when parent died. Lawyers are stuck. If you are a appeal lawyer who believes you can get our base value appealed or deeply reduced so we can at least downsize please email us.