2018 VOTER GUIDE: A look at California's Prop 5: Property tax transfer initiative
SAN FRANCISCO (KGO) -- In the November election, California voters decided on 11 propositions.
Prop 5 failed, here's everything you need to know about the proposition.
>>> California and Bay Area election results here
>>> National election results here
PROP 5:
Changes requirements for certain property owners to transfer their property tax base to replacement property. Initiative constitutional amendment and statute.
SUMMARY:
A "YES" vote would allow homebuyers who are older than 55, severely disabled or who have contaminated or disaster destroyed property to transfer their tax assessments from their old home to their new home, no matter the value of the new home, its location, or how many times the buyer has moved.
Current law only allows eligible buyers to transfer a tax assessment if their new home is of equal or lesser value of their old home and only once per lifetime.
HOW DID IT GET ON MY BALLOT:
The backers of Proposition 5 collected enough signatures of registered California voters to qualify it as a ballot measure.
MAJOR BACKERS:
California Association of Realtors (CAR) sponsored the measure. CAR argues this could take away the fear of seniors who wish to downsize their homes by selling larger homes and buying smaller ones.
MAJOR OPPONENTS:
California Teachers Association, Assm. David Chiu (D-San Francisco). They believe it will not make more housing available, as supporters contend.
IMPACT TO TAXPAYERS:
This could cause local governments and schools to lose $150 Million in annual property taxes and up to eventually up to $ 1 billion per year. (Estimates based on 2018 value of the U.S. Dollar)
*NOTE: All information regarding donations as backers or opponents of a ballot measure reflects financial disclosures made to California's Secretary of State as of September 7, 2018.
LEARN MORE: CALmatters is a nonpartisan, nonprofit journalism venture committed to explaining how California's state Capitol works and why it matters. Check out the CALmatters 2018 Election Guide
Take a look at full coverage on the 2018 election here.
