HJTA Announces Support for ACA 9 to Reverse New Inheritance Tax
A version of this article was first published on the Reinstate58.hjta.org
The Howard Jarvis Taxpayers Association today announced its strongest support for Assembly Constitutional Amendment 9, introduced by Assemblyman Kevin Kiley (R-Granite Bay) on Monday.
ACA 9 would reverse the new inheritance tax on property passed from parents to children, a little-noticed part of Proposition 19 affecting middle-class families that have invested their life’s earnings in a home and limited other real estate. Prop. 19 was narrowly approved by voters in November following a costly ad campaign paid for by the California Association of Realtors that emphasized only the provisions in the measure that aided wildfire victims and seniors seeking to move to a new home.
Proposition 19 repealed Proposition 58, a 1986 measure that passed with the approval of more than 75% of state voters after a unanimous vote of the Legislature placed it on the ballot. Prop. 58 amended the state constitution to permit parents to transfer a home of any value and up to a $1 million of other property—such as a vacation cabin, rental property or small business—without reassessment. Under Prop. 19, those properties would instead be reassessed to market value as of the date of transfer, with only limited exceptions, sharply raising the annual tax bill on long-held family properties.
Proposition 19 similarly repealed Proposition 193, passed overwhelmingly by voters in 1996 to extend the same tax treatment to transfers between grandparents and grandchildren if the children’s parents were deceased.
To read the full article, visit reinstate58.hjta.org
