At the 2017 Fall Board of Directors’ session, the California Association of Realtors Board of Directors approved a motion to proceed with qualifying a statewide ballot measure which, if passed by the voters in November 2018, would allow homeowners age 55 and over to transfer their property tax basis from their current primary residence to a new primary residence anywhere in California, as many times as desired. The new property tax basis would be determined by blending the current and new property valuation according to a formula, lowering the property tax for the new purchase.
Currently, homeowners age 55 and over can only transfer their property tax basis one time, to a property of equal or lesser value, within the same county, or to one of only 11 counties in California. Sacramento is NOT one of these 11 participating counties, however, El Dorado County is. So many Bay Area and other California retirees are skipping over Sacramento and moving to El Dorado County to keep their tax base.
The initiative will allow individuals 55 years of age and older to transfer their property tax basis to any home in the state, to purchase any price home, and to transfer their basis as many times as they wish. According to the Legislative Analyst’s Office, almost 43,000 additional real estate transactions will occur annually. To approve the Property Tax Basis, the Portability Task Force recommends that a ballot initiative for the November 2018 state wide ballot be circulated for signature gathering. We will update you on how to sign the ballot initiative when it is available, so stay tuned!