01/17/2024
Initiative to Repeal the Death Tax - A Conversation with the Howard Jarvis Taxpayer Association & the California Association of Real Estate Brokers (CAREB)
Today at 1P (PST), on "Selling Sacramento," we're delving into a topic that hits close to home for many Californians - the so-called "death tax" linked to Proposition 13 and the newer Proposition 19. As a community deeply invested in the legacy and future of our families, understanding how these laws impact property inheritance is crucial.
Imagine this scenario: Your parents, who bought their family home in Sacramento in the 1980s for $100,000, have seen its value skyrocket over the decades. Under Prop 13, their property taxes remained relatively low, buffered against the rapid increase in the home's market value. However, with their passing, you stand to inherit this home. Here's where the "death tax" comes into play.
Proposition 19, which amended Prop 13, introduced new rules for property tax reassessment upon inheritance. Previously, you could inherit a family property without worrying about a significant hike in property taxes, a relief that kept many family homes within the family. But now, unless you use the inherited home as your primary residence and its value doesnโt exceed a certain limit, you could be facing a steep increase in property taxes, potentially making it unaffordable to keep.
This change has profound implications. It could mean selling a cherished family home because the taxes have become unsustainable. It affects not just the wealthy but many middle-class families whose most valuable asset is often their home.
Our guests today are advocates working towards repealing this aspect of Prop 19. They argue that the "death tax" disrupts the ability of families, especially those with modest means, to pass on their most significant asset to the next generation. They'll discuss the impacts on homeownership continuity, family legacy, and the broader implications for our community.
Tune in to "Selling Sacramento" on 97.5 FM KDEE at 1 PM today. Whether you're a homeowner, potential heir, or simply interested in the future of real estate in Sacramento, this discussion promises to be enlightening and impactful. Let's explore how these laws affect us all and what potential repeal could mean for our families and communities.
Join the conversation and stay informed - your family's legacy could depend on it.
