It’s certainly nice and politically correct of the California Governor to let resident companies and families pay property taxes a few weeks late; with millions of people unemployed or under-employed — with mouths to feed and bills to pay. Politically correct, with nice optics… But not terribly effective, let’s face it.
How about just not collecting property taxes as long as the pandemic is literally killing our economy. How about something with a material, profound affect, not just nibbling weakly around the edges. However, California still has more property tax relief options than any other state in the union, for middle class homeowners. Wealthy residents have countless tax cuts and property tax breaks.
At any rate, the country is moving rapidly towards a vaccine. Fine. But if the Governor of California and his team really want to move the needle for middle class residents, and genuinely help working families survive the disastrous pandemic economic effect — why don’t they update and bolster the benefits offered by Proposition 19, which is already in place? No need to re-invent anything to move this to the next level!
As the pandemic continues to diminish the California economy — the powerful realtor community and the State Legislature are promoting status quo — not really digging in and trying hard to upgrade and improve the property tax breaks that are already in place. They seem to have no appetite at all to make the lives of millions of middle class homeowners more secure — with hope for better days in the future. They seem instead to be far more interested in making the realtor community and the Legislature more secure, more comfortable, and a great deal wealthier regardless of the fact that these partisan groups are already swimming in money!
However, despite the Legislature’s indifference to the financial problems of the middle class, Californians still have property tax relief options such as the right to keep parents property taxes, and transfer parents property taxes upon inheriting property and inheriting property taxes at a low base rate, as per Proposition 58 which is really now Proposition 19… Plus of course Prop 13 — but the walls may close in on us fast if we allow the powers that be to return with anything like the infamous commercial property tax Proposition 15; which would have increased prices across the state on virtually all goods and services… cutting deep into the middle class spending and tax paying machine that basically keeps the state economy alive.
Many of these middle class residents stay up to date on their property tax options, with websites such as the official California State Board of Equalization site. As well as by researching inheritance solutions and property tax relief on property tax blogs like this one, Property Tax News; plus going to websites addressing Prop 13 and maintaining a low property tax base… basic property tax breaks that allow resident to spend less and save more, like Trust and Estate Loans, and crucial updated information and news on Proposition 19 at the Howard Jarvis Taxpayers Association.
Residents these days also look seriously at options and solutions to property devalued by the affects of the pandemic… going to websites like Michael Wyatt Consulting for help. In fact, Mr. Wyatt speaks to this on his website in a very direct way. He says:
“The Covid-19 / Coronavirus pandemic has severely impacted the commercial and investment real estate markets in California. This has placed a significant burden on many property owners. The good news is, property tax relief is now available. One of the property tax relief measures available is for when “restricted access” to properties causes a loss of market value of those properties. The other is reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or “other factors causing a decline in value“. An effective method of supporting lost value due to restricted access or damage to a property, is to measure the loss of revenue from periods before and after the event causing the decline of the property’s performance.“
New homeowners in California also research property tax breaks at established finance firms that are focused on options that involve Proposition 58, and now Proposition 19, maintaining a low property tax base through a loan to an irrevocable trust, such as critical financing options for California residents furnished by Commercial Loan Corp — again, working hand-in-hand with Proposition 58 having morphed into Proposition 19 for all intensive purposes. For all commercial and residential property owners; enabling beneficiaries and homeowners to lock in a secure, low Proposition 13 property tax base, while buying out co-beneficiaries that have inherited the same property, yet are committed to selling their property shares — and who ultimately walk away with far more money in their pocket from irrevocable trust funding, rather than simply accepting cash from a third party buyer!
Property tax options that involve going through a trust loan are important to tax attorneys and sophisticated beneficiaries, as these specific property tax options are always more profitable; as well as maintaining a low property tax base with a property tax transfer, basically for the life of the property, with a standard parent to child transfer, or parent to child exclusion from paying reassessed property taxes; as long as requirements for Proposition 58 — now Proposition 19 — have been met.
We so have effective options to turn to in California… So we shouldn’t complain too much even though new property tax relief changes have created some challenges. We also have a lot to be thankful for.
If you are curious how much you might be able to save by taking advantage of California Proposition 19 or Proposition 58, fill out the short form located here for a free estimate.