Property Tax Portability Helps Seniors and First Time Homebuyers
The California Association of REALTORS® (C.A.R.) is embarking on a historic effort to increase homeownership opportunities, one that we know REALTORS® can feel good about supporting. C.A.R. is going to qualify an initiative for the November 2018 ballot which will allow senior homeowners (55 years of age and older) to keep all or most of their Proposition 13 property tax savings when they move.
This is important because seniors, who are often on a fixed income, fear they will not be able to afford a big property tax increase if they sell their existing home and buy another one, discouraging them from ever moving. As a result of this “moving penalty”, almost three-quarters of homeowners 55 and older haven’t moved since 2000. C.A.R.’s portability initiative would allow senior homeowners to transfer their property tax base from their current residence to a replacement residence located anywhere in California.
The measure, if approved by voters, will let thousands of seniors, currently “locked into” their homes by low property tax rates purchase a home that will better suit their needs while expanding the housing inventory for young families seeking to buy a home. According to the California Legislative Analyst’s Office, tens of thousands additional homeownership opportunities will occur annually.
This initiative will need to qualify for the November 2018 ballot. To support this effort and for other advocacy and education efforts, C.A.R.’s Board of Directors approved a $100 increase to the Issues Fund Assessment for 2018. All REALTORS® will be required to pay this assessment. Members who have already paid their 2017-2018 REALTOR® dues bill in full will receive a revised dues bill with the new amount, and will have to pay the assessment. Members on installment plans will also receive revised dues bills with an updated payment schedule.
There are opportunities for REALTORS® to be involved as well. We are asking you to help gather signatures on petitions. This will be a great chance for you to show your clients all you are doing to promote homeownership opportunities and create tax savings for seniors. REALTORS® will also be asked to help educate their clients and the public about the benefits of the initiative, and, of course, next November we will need to get voters to the polls to win on election day.
We know you will have many questions. Please see the links to resources below. If after reviewing the resources below you have additional questions, please feel to contact C.A.R. via email at firstname.lastname@example.org or by phone at (916) 492-5200.
Sign up here to receive paperwork to gather signatures.
Tax Portability Talking Points (via C.A.R.)