An initiative opposed by C.A.R. to tax commercial property at a higher rate than residential property has already qualified for the November 2020ballot.
Last October, the Legislative Analyst’s Office issued a report in which it noted that the state is losing $1.5 billion per year due to parent/child and grandparent/grandchild property transfers. C.A.R.’s new initiative would require the child/grandchild to reside in the home (as opposed, for example, to renting out the home), and limit the value of the exemption to $1 million.
Current law requires at least 50 percent of a company to be transferred in order for reassessment of that company’s real property holdings to be reassessed. C.A.R.’s new initiative states that regardless of the increments of transfer, if a total of 90 percent of a company is transferred, the real property holdings of the company must be reassessed.
C.A.R. has already qualified an initiative for the November 2018 ballot, now known as Proposition 5, which addresses the “moving penalty” on seniors, the disabled, victims of natural disasters, and those whose homes are located on contaminated property.
Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.