In this podcast episode hosted by Stew Jenkins, Ben Heilig, a managing partner at HCS Equity, discusses the Howard Jarvis Taxpayers Association ballot initiative aimed at repealing parts of Proposition 19 (adopted in 2020) if you vote for it on November 5th, 2024. He talks about why you should support the Howard Jarvis Taxpayers Association ballot initiative to restore property taxpayers rights to pass on their lower tax assessments to their children and grandchildren after they die.
Here are the key points discussed in the episode:
Part 1 of a 3 part podcast.
Part 1- Restoring Property Taxpayers’ Rights: The Howard Jarvis Taxpayers Association Initiative
Listen to part 1 of the 3 part podcast here.
Ben Heilig has a private firm located in the Central Coast, specifically in Carmel Valley near Monterey that provides private loans to trusts and estates throughout California. Heilig got involved in the issues related to Proposition 19 because it directly relates to their business, which deals with facilitating the equalization and distribution of property and cash within trusts and estates.
Proposition 19 introduced changes to the parent-child property transfer rules, impacting property taxes. Before Proposition 19, there were broader exclusions from reassessment for primary residences and other properties like rentals, vacation homes, and commercial properties. Proposition 19 eliminated many of these exclusions and introduced a cap on the present value that could be excluded from reassessment for primary residences.
Proposition 19 was originally put on the ballot by the California Real Estate Association. While it promised certain benefits, some of its provisions, especially related to property tax reassessment, were controversial. The Howard Jarvis Taxpayers Association ballot initiative seeks to repeal the changes made by Proposition 19 and restore property taxpayers’ rights to pass on lower tax assessments to their children and grandchildren after they die.
Proposition 19 had provisions related to when a primary residence must become the new owner’s primary residence to qualify for certain tax benefits, and the initiative aims to address these issues.
The episode emphasizes that the initiative seeks to provide relief to property owners who may have been negatively impacted by Proposition 19, particularly in terms of property tax assessments. It further mentions that realtors who initially supported Proposition 19 have since realized its potential negative consequences and are now supportive of the initiative to repeal parts of it.
Jump to part 2 – “Reclaiming Property Tax Benefits: The Howard Jarvis Initiative and the Fight Against Proposition 19”
Or get in touch with HCS Equity directly.
Part 2 of a 3 part podcast.
Part 2 – Reclaiming Property Tax Benefits: The Howard Jarvis Initiative and the Fight Against Proposition 19
Listen to part 2 of the 3 part podcast here.
Ben discusses the changes brought by Proposition 19, which limited the parent-child and grandparent-grandchild exclusion from property tax reassessment in California.
The Howard Jarvis Taxpayers Association is proposing an initiative to repeal some parts of Proposition 19 and reinstate the previous exclusions (Proposition 58/193), specifically for primary residences.
Under Proposition 58 and Proposition 193, property owners could pass on their property’s Proposition 13 assessment value to their children and grandchildren, with no value limits for primary residences and up to $1,000,000 of assessed value for additional property. The new initiative is concise and focused on reinstating the previous property tax assessment rules, without additional complexities or unrelated provisions.
Ben further mentions the grace period that allowed property owners to plan their property transfers before Proposition 19 went into effect in February 2021. The new initiative may have a similar grace period for future transfers but may not apply to transfers that occurred between February 16, 2021, and the start of this initiative (if passed) going into effect.
It’s unclear whether the initiative will provide retroactive relief in the form of refunds for property owners who were already reassessed under Proposition 19. Ben highlights the potential benefits of rolling back property taxes for those affected by Proposition 19, even if they don’t receive a retroactive relief.
Jump to part 1 – “Restoring Property Taxpayers’ Rights: The Howard Jarvis Taxpayers Association Initiative”
Or Jump to part 3 – “Preserving Property Rights: The Howard Jarvis Initiative and the Fallout from Proposition 19”
Or get in touch with HCS Equity directly.
Part 3 of a 3 part podcast.
Part 3 – Preserving Property Rights: The Howard Jarvis Initiative and the Fallout from Proposition 19
Listen to part 3 of the 3 part podcast here.
The discussion continues with the impact of Proposition 19 on property tax laws in California and how it changed the ability of people to inherit their parents’ low property taxes. Ben discusses how Proposition 19 negatively affected rental and multifamily properties, thus triggering property tax reassessment. With the inability to inherit multifamily or rental properties, property taxes are reassessed at fair market value, potentially leading to increased rents.
Furthermore, Ben presents a scenario where a daughter inherits her parent’s house and may qualify for an exemption under Proposition 19 if she makes it her primary residence, while the son inherits a four-unit apartment building of equal value and does not receive the same benefit. This highlights the unequal impact of the proposition on different types of properties.
He further mentions the impact of Proposition 19 on inheriting a family business. By inheriting a family business, that building is subject to tax reassessment. The reassessment can force the closure of a family-owned business due to increased property taxes.
At the end, Ben encourages listeners to visit the Howard Jarvis website and download the petition to support the initiative aimed at reinstating property tax benefits similar to those under Proposition 58. He emphasizes the importance of sharing this information with friends and family and anybody who owns a property in California that might benefit from the tax benefits under Proposition 58.
Overall, the episode focuses on the consequences of Proposition 19 and the initiative sponsored by the Howard Jarvis Taxpayers Association to address the issues it created regarding property tax assessments in California.
Jump to part 1 – “Restoring Property Taxpayers’ Rights: The Howard Jarvis Taxpayers Association Initiative”
Or Jump to part 2 – “Reclaiming Property Tax Benefits: The Howard Jarvis Initiative and the Fight Against Proposition 19”
