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New Property Tax Changes Proposed in California
"Sen. Jerry Hill (D-San Mateo) is introducing a ballot measure to require children who receive the state’s property inheritance tax break to live in their parents’ homes," reports Liam Dillon.
Dillon caused a stir in August 2018, when his investigation revealed "63% of the homes inherited under the system in Los Angeles County were used as second residences or rental properties last year, with a similar trend seen in a dozen other coastal counties."
Hill is saying the new bill would curb "abuses" of the system. It's not the only political effort looming as a threat to the current inheritance tax regime. Dillon reported in October that the California Association of Realtors is considering a similar cut to the inheritance tax to make more palatable their "broader initiative to extend property tax benefits for homeowners 55 and older and clamp down on businesses who avoid higher property taxes when they buy commercial real estate." In November, voters rejected Proposition 5, which would have enabled the first part of that equation.