California Proposition 5, portable real estate tax break, explained in less than 1 minute


No one is safe from California’s housing
crisis. Rich or poor. Renter or landlord. Now one of the largest, wealthiest and
most politically powerful groups in the state is asking for help. Baby boomers.
I’m Matt. I’m the data and housing reporter here at CALmatters and I’m
gonna explain Prop. 5 in less than a minute. Some California baby boomers feel trapped by a sweet tax break. California has a weird property tax system. The current value of your house doesn’t matter. What matters really is how long
you’ve owned it. That older couple down the street who bought their home right
after they came back from Woodstock? They’re paying very little in property
taxes but if they want to move they’ll have to pay way more, maybe more than
they can afford. Prop. 5 aims to help those seniors out. Brought to you by the
California Realtors the measure allows Californians over 55 to apply their
property tax rates from their old house to their new house. Normally you pay a
lot more in property taxes when you move. Supporters of Prop. 5 say it’ll put
thousands of new homes on the market. Homes that younger people can buy. They
also say it allows seniors to downsize and move closer to their kids.
Opponents say it would eventually cost schools and local governments a billion
dollars a year—and that it’s just a ploy for realtors to boost their commissions.
So vote yes if you think Californians age 55 and over deserve their property
tax breaks when they move. Vote no if you think it would benefit too few and cost
too much. For more on Prop. 5 and for everything
else on your ballot, go to calmatters.org

37 comments

  • Doesn't this just add to the laws passed by 60 and 90?

  • If the homeowners sell one house and purchases another, how does that make more housing available? The same number of houses are available.

  • 5: Portable Real Estate Tax Break
    https://elections.calmatters.org/2018/california-ballot-measures/proposition-5-portable-real-estate-tax-break

  • Can’t trust politicians with money

  • A tax break for rich old people. Many of them are far more financially comfortable than the younger generations. This prop would give a major reduction in property tax, compared to amounts dictated by current law, if the retirees buy a MORE EXPENSIVE home than their current home's market value. Why do downsizing retirees on fixed incomes need to buy a more expensive property?

  • Baby boomers can suck my millennial cock.

  • Voting yes

  • Prevent extortion of the elderly. Hell ya

  • Those seniors are going to make a humongous profit selling the home that they bought decades ago. This is just a ploy to make real estate magnates even richer. Vote NO.

  • For most seniors, moving is a choice. You move, you pay.

  • First of all, if you own a home in California then you're already 50 times better off than most Californians.

    Secondly, the tax break that you are receiving is an incentive and not an entitlement.

    Lastly, moving is a choice. Therefore, if you move then you pay.

  • The Government is asking to have more power over us, the people, young or old… your money is better in you hands

  • Not satisfied with this video and fails to say that seniors are already allowed to do this once without penalty. This tax only helps the old peeps that plan to buy and sell for profit a lot. This prop lets them do it limitless.

    "For the last 30 years, older homeowners who move to a smaller and less expensive house have been able to bring their current property tax with them, an encouragement to leave a larger and more expensive home to a younger family. These homeowners can do this once in their lifetime. This was an extension of Prop. 13.

    But Prop. 5 changes this equation. If it's passed, a homeowner over 55 can use their tax break to keep buying more expensive houses, over and over, anywhere in California. Meanwhile, younger, first-time home buyers with less income will face higher housing prices, and renters will have an even harder time becoming homeowners."

  • just vote Cox and free YOURSELFS from democrats rules and gas taxes!!! you'll thank yourself later 😎😎😎

  • just vote Cox and free YOURSELFS from democrats rules and gas taxes!!! you'll thank yourself later 😎😎😎

  • CALIFORNIA WAKE UP LET'S COME TOGETHER VOTE NOVEMBER 6. JOHN COX FOR GOVERNOR OF CALIFORNIA. LT GOVERNOR GAVEN NEWSOME IS BAD FOR CALIFORNIA.

  • No one should be paying these taxes anyway so vote yes you filthy commies.

  • Why would old people buy a big house if they have an empty nest?

  • Vote YES. When you are a senior and can't work anymore, you won't regret it.

    That being said, it won't give incentive seniors to move at all if you raise their property tax upon moving.

  • this video is misleading. Current law limits the ability to transfer the tax base only ONE TIME. Prop 5 gives seniors the ability to transfer the tax base an UNLIMITED number of times. This is an incentive to flip houses/drive up median house prices. Vote NO on Prop 5

  • Vote NO on Prop 5

  • Voting NO. This does not show the reality and statistics of every region in California besides the stereotyped vision of middle class Baby Boomers in their American dream home.

  • JOHN COX IS BETTER FOR CALIFORNIA THEN GAVEN NEWSOME. LOOK AT CALIFORNIA UNDER LT GOVERNOR GAVEN NEWSOME & JERRY BROWN LEADERSHIP. πŸ”₯ πŸ”₯ πŸ”₯ MESS

  • There's already a loophole in Prop 13 to help seniors that does exactly this. This proposition just makes that loophole bigger.

  • Mrs.GotDRAMAbringit

    Vote NO on 5

    If older people pay lower property taxes, Prop 5 would cause significant tax losses at both the state and local level. During the next few years, schools and local governments would lose over $100 million per year. Over time, this amount would grow to about $1 billion per year. Less money would go to schools and fire departments. The state would need to spend more money on these services. Increased state spending would be between $100 million and $1 billion per year.
    Show less

  • Rodrick Bernstein

    Baby Boomers are finally getting a taste of the problems they caused.

  • Voting No.

  • This is a bandaid on a bandaid on a bandaid. Better to provide 65+ seniors a dollar-amount tax exemption like Texas does, and get rid of Prop 13. That's just bad economics.

  • $13M spent by the California Associations of Realtors in support. Says a lot…

  • I think prop 5 is a bit overboard. It should just enable seniors etc to downsize or move laterally in value without penalty ANYWHERE within CA. Perhaps if they upsize, they could keep their old tax rate up to the value of the sold home, but add on current taxes for the amount over that. The key being that there shouldn't be restrictions to the county they are in.

  • Vote no prop 5

  • BIG FAT NO.
    Why should baby boomers get a break?
    Maybe they can β€œjust work harder and stop expecting things to be handed to them.”

  • Yep, no rich person over 55 will take advantage of this (if it passes) to upgrade to that 7 bedroom house while paying their 2 bedroom property taxes…..

  • I am asking for help too. All I have is a RV but my daughter doesn't want to live in it. I need to find apt or be homeless. By the way I have 2 jobs still not enough for a place. $1500 for 1 bd 3x income =$4500. Not near that! IDK.

  • Vote NO on this shit

  • Disruptarian Radio

    More about Prop 2 here: > https://www.youtube.com/watch?v=rrKwxbc6jRg

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