3 Benefits of the Property Tax Fairness Initiative

One of the age groups most affected by the increasing costs of buying a new home is the people nearing or in retirement.

The problem is that older adults face financial challenges because of the increased property tax costs of moving. As a result, seniors have a hard time “rightsizing” to an appropriate home for retirement.

How the Tax Fairness Initiative Works

This tax fairness initiative is designed to support retirees and others in maintaining their property tax costs if they decide to move. Even if someone is downsizing to a smaller home, the property taxes are higher because of the increased cost of housing – compared to the lower price that was paid for their original property years ago. Here are a few benefits of this initiative:

1. Eliminate Moving Penalty: For those who qualify, they can avoid the “moving penalty” of higher property taxes on their new property. Instead of stepping up to a higher property tax bill, the current tax assessment is rolled to the new property.
2. Qualifying Home Buyers: Not only are those 55 and older qualified for this tax break, but the tax fairness initiative also applies to victims of natural disasters and people with disabilities.
3. No Limits: Regardless of the value of the original property and the new property, this tax initiative applies to homes of any price. The person can move anywhere in the state. Additionally, any number of moves can qualify for the tax initiative.

In November 2020, the initiative will be reassessed to address corporate property transfers and intergenerational transfers if the heirs decide to hold the property for investment reasons. For more information, you can read about this initiative on the California Association of Realtors’ website.

Customized Real Estate Services for Retirement

At Greenwald & Gerke, we keep our clients up-to-date on the options available for finding the right home in retirement. Our team specializes in real estate for seniors, and we’re always here to help with your unique needs. Call to learn more about available services: (844) 782-9674.