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