|For more information, please contact Dorothy Holzem at 916.650.8133, or Betsy Hammer at 916.650.8108.|
Property Tax Revenue Threat Before Committee Next Week
SB 378 (Beall) will be heard by the Senate Governance and Finance Committee on Wednesday, January 13. CSAC is opposed to this bill unless amendments are taken to mitigate the potential loss of property revenue for counties.
This bill expands on existing “Prop 60/Prop 90” provisions related to homeowners’ (who are age 55 and older or permanently disabled) ability to transfer their existing property tax bills to residences of equal or lesser value, known as “base year value transfers”, and thereby lowering a person’s tax liability. The new proposal would allow homeowners to transfer to more expensive homes. A previous version of this bill would have cost local governments nearly $7 million in general fund revenue statewide, according to the Board of Equalization analysis.
CSAC is seeking amendments that would remove our registered opposition. First, CSAC is seeking to retain county budget authority by requiring that the proposed expansion must first gain approval following action by the Board of Supervisors. Alternatively, CSAC has requested state reimbursement for lost property tax revenue if the state wishes to subsidize an individuals’ desire to move to a more costly home, thereby holding counties harmless and securing anticipated revenue.