On November 6th of this year, Californians will vote on The Property Tax Fairness Initiative. The California Association of Realtors'-backed ballot initiative seeks to make low property tax rates transferable to qualifying homeowners.
Despite the initiative's stated aims to increase the affordable housing stock in California, not everyone is convinced. “It appears to have a lot more to do with increasing the number of real estate commissions than addressing California’s housing crisis," says Chris Hoene, executive director of the nonpartisan California Budget & Policy Center. Realtor.com reports that the share of housing stock the tax cut may free up would be "a drop in the bucket," compared to what's needed. “The [original] initiative [Proposition 13] was initially focused on keeping seniors in their homes. 40 years later, we’re saying that’s a problem..."
The Property Tax Fairness Initiative would make it much more affordable for homeowners who are aged 55 and older, disabled, or in natural disaster–ravaged communities to sell their current home and buy a new one within the state without being hit by crushingly higher property taxes ... Proposition 13 has been a boon to longtime homeowners in the many California towns where prices have appreciated dramatically. However, the downside is that if they sell, they often can't afford to buy another home at today's prices. If voters approve the initiative, moving to cheaper parts of the state could become much more affordable.
