Category Archives: TAX Issues

Want to keep your old Proposition 13 tax base when you move? Here’s how!

Adding more teeth to Prop 13–expanding propositions 60 and 90

C.A.R.’s Portability Initiative
Campaign Talking Points

• GOAL: To create homeownership opportunities for young families and
preserve tax savings for seniors. Expand Proposition 60 and 90 voter mandated keeping of old property tax base.
• Proposition 13. California’s property tax system is based on the purchase price of a
home. Proposition 13 caps property taxes at 1 percent of the purchase price (Prop.
13 property tax base).
• Moving Penalty. When a homeowner relocates, their property taxes will be 1
percent of the purchase price of the replacement home. As a result, homeowners’
property taxes generally increase when they move.
• Seniors. In California, homeowners 55 years of age or older can transfer their Prop.
13 property tax base – only once – to a replacement home located in the same
county so long as the purchase price for the replacement is equal to or less than the
sale price of the original residence. These homeowners can also transfer their
Prop.13 property tax base to a home located in a county that has agreed to the
transfer (only 11 counties have agreed to inter-county transfers).
• Data. Data shows that homeowners are very aware of how their property taxes will
increase when they move. As a result, almost three-quarters of homeowners 55
years of age or older have not moved since 2000!
• Research. Because of the housing supply shortage, 65% of starter homes are
selling at or above the asking price which makes it very difficult for first-time
homebuyers to enter the market.
• C.A.R.’s Initiative. C.A.R.’s Portability Initiative would allow homeowners 55 years of
age or older to transfer their Prop. 13 property tax base to a home of any price,
located anywhere in the state, any number of times.
• Buy Up. For example: Homeowner originally bought for $100K ($1K/year for
property taxes), subsequently sells for $300K, and buys a replacement home for
$400K. The $100K difference between $300K and $400K is added to the original
Prop. 13 property tax base of $100K for a new Prop.13 tax base of $200K ($2K/year
for property taxes). Under existing law, this transfer could not be made and the
Prop. 13 tax base would be $400K ($4K/year for property taxes).
• Buy Down. Returning to the example: If a homeowner buys a less expensive home,
for example for $200K, the property taxes will be proportionally the same as for the
original home. In other words, if the tax base was one-third of the sales price, the
new property tax base would be a third of the new sale price (i.e., 1/3 of $200K =
$67K or $670/year for property taxes). Buying down reduces the homeowner’s
annual property tax bill.

• Arguments in Favor:

– No moving penalty. The initiative keeps senior homeowners’ property taxes low
when they move.
– Increased supply. As senior homeowners move, they create housing
opportunities for younger, growing families and first-time homebuyers that don’t
exist today.
– Local finances. When a senior moves out and a young family moves in, the tax
revenue to the locality annually increases.

Podcast of Sunday, Oct 29th Show with Property Tax Assessor Bill Rousseau

Had a great discussion yesterday with County of Sonoma Clerk, Recorder, Tax Assessor and Elections Chief, Bill  Rousseau.  Click to hear the podcast! We had a far ranging discussion on keeping your property 13 status when rebuilding your destroyed home and repairing damage. Also, discussed:  Propositions 60/90 and how you can move your low Proposition 13 tax base with you if moving.  One of the emergency ordinances is found under Revenue and Taxation code 69.3. This allows larger parameters in a homes value if taking your old prop 13 tax base with you–up to 120% of the old value. Also, the number of counties allowing transfer of the old prop 13 base have been changed. Below are those counties:

Contra Costa,  Modoc,  San Francisco, Solano, Sutter, Los Angles, Orange, Santa Clara, Sonoma, Ventura.

Questions? You are encouraged to call: 916-272-3350 or your local County Assessor’s office.

This Sunday, Fire Damage Re-assessment! Sonoma County clerk-recorder-assessor Bill Rousseau Special Guest

Bill will answer ALL of your questions regarding Sonoma County Property Tax issues.

Sonoma County clerk-recorder-assessor Bill Rousseau will join me to discuss emergency reassessments of your fire damaged property. Other “emergency” issues will also be discussed. Have a home partially damaged? What if you are one of a few homes left standing? Lower your assessment? How about your old proposition 13 tax base after rebuilding? This and more will be discussed.

Chief Deputy Assessor Greg Walsh Joins us on the “hour” this Sunday.

Do you know you can take your old tax bill, the cheap Proposition 13 roll-back basis, WITH you when you sell your home? How about transferring to another County and keeping your old property tax basis? Did you have your taxes “rolled-back” due to the real estate crash of 2007 only to see them bounce back big time? These and other perplexing questions answered as Greg Walsh, Chief Deputy Assesor joins us on the show this Sunday!

Propositions 60, 90 and 110 are voter-approved amendments (Revenue and Taxation Code, Paragraph 69.5) which allow qualifying Sonoma County homeowners to transfer the taxable value of a previous residence to a new residence. For many people, this can result in substantial tax savings.

  • You (or your spouse who resides with you) must either be at least 55 years of age (Prop 60) or severely and permanently disabled (Prop 110) as of the date you sell the home you are replacing.

We sometimes refer to the process of reviewing property as “the Prop 8 review process” because of its association with temporary declines in taxable value allowed by the passage of Proposition 8 in 1978.

Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

Exchange Expert Toni Esposti.
1031 Exchange Expert Toni Esposti.

Toni Espositi of Old Republic Exchange Company (OREXCO) joins us on the Real Estate Hour Sunday June 5th 9-10AM pst., 1350AM, 103.5FM, and streaming live with Podcast immediately following the show at KSRO.com.

Regional Sales Office – California ‒ Northern
& Pacific Northwest – Ms. Toni Esposti, CES®

Vice President & Regional Sales ExecutiveToll Free: 888-677-1031
E-mail: tesposti@orexco1031.com

—————————————————–

There’s a very informative brochure on the OREXCO website at: https://orexco1031.com/Downloads/OREXCO_brochure_English.pdf

Here are some answers to common questions from the Orexco website FAQs . For one on one, specific answers to all your 1031 questions, call in during the show 707-636-1350 or contact Toni Esposti directly: Continue reading Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

This Week’s Guest–Bill Rousseau, Sonoma County Clerk-Recorder-Assessor

Bill will answer ALL of your questions regarding Sonoma County Property Tax issues.
Bill will answer ALL of your questions regarding Sonoma County Property Tax issues.

We are delighted to have back Bill Rousseau,
Sonoma County Clerk-Recorder-Assessor, do discuss the latest in property values and assessments. Propositions 60 and 90 plus Prop 8 will all be discussed. Your property taxes, if rolled back due to the great recession, are on the rise BIG TIME!!

For an explanation of Prop 8 click HERE.

For information on “Disaster Provisions” in the Assessment of your property click HERE.

Link to explanation of Propositions 60 and 90 please click HERE.  Proposition 90, inter-county transfers of tax bills as per Prop 60 are as follows. This was as per Nov of 2014. Check with the county you are moving into to determine if they follow Prop 90.

Alameda
Los Angeles
Riverside
San Diego
Santa Clara
El Dorado
Orange
San Bernardino
San Mateo
Ventura

It’s Tax Time! Tune in to The Real Estate Hour for Timely Real estate Tax Tips with Madelyne Cromwell

In 2014 , did you Sell a House? Buy a House? Short Sale? Small business owner ? Realtor? Wondering what  you can write off? On This week’s Real Estate Hour, we’ll have the answers to those and many other questions. Call in with your questions 9-10AM Sunday 707-636-1350. and, tune in to 1350AM, 103.5FM or KSRO.com

Madelyne Cromwell, Enrolled Agent has expertise in tax return preparation and tax planning, and is authorized to represent clients before the IRS.Madelyne Cromwell Madelyne is a member of the National Association of Enrolled Agents (NAEA), the California Society of Enrolled Agents (CSEA), the Sonoma County Executives Association (SCEA) and the American Institute of Professional Bookkeepers (AIPB).

Prior to joining Cromwell Tax & Bookkeeping, Madelyne spent 15 years in financial services. Most recently, she was a Director at BlackRock, the world’s largest asset manager, where she held senior management positions in finance and technology. Madelyne started her career as a financial analyst at Lehman Brothers in New York City.

Madelyne has a B.S. degree, magna cum laude, in Foreign Service from Georgetown University and an A.S. degree from the Santa Rosa Junior College.

When she is not working, Madelyne enjoys spending time with her partner and two furry (canine) children, playing golf, and watching the Oakland A’s.

On Today’s Show – County Clerk, Recorder, Assessor, Bill Rousseau: Sonoma County Property Tax Assessments 2014, The Good and the Bad News, and The Appeal Process….

On today’s show we’ll be talking about the good (Home Equity is up) and the bad (Property Taxes are up) …and discussing the Sonoma County appeals process if you feel your property’s assessed value is off.

Not sure what your assessed value is? http://www.sonoma-county.org/assessor/SearchRoll.htm

Don’t agree with your Assessed Value? http://sonomacounty.ca.gov/Board-of-Supervisors/Services/Assessment-Appeals/

In California, Proposition 13 baseline year is a major factor in DETERMINING your Property Taxes. Had your property re-assessed, and lowered in the down-market (Prop 8)? Remember, it can go UP quicker than if it is Prop 13 only! We have the man who can explain all of this with clarity on the show THIS Sunday, November 16, 2014–Bill Rousseau–County Clear, Recorder and Assessor! The graph below is a “Follow-Along” for all of our listeners!

Remember, if your real estate was "re-assessed" due to an appeal or general assessment, and it is UNDER your "base-line" Prop 13 value, it will go UP faster than Prop 13's max 2% yearly increase.

 

Bill will answer ALL of your questions regarding Sonoma County Property Tax issues.

This week on the show we are delighted to have William (Bill)  Rousseau, Clerk Recorder Assessor for Sonoma County on the air with us. We’ll discuss the current state of property tax assessments, Proposition 13 AND Proposition 8 and how both inter-play in property taxes on YOUR home. Also discussed will be the once a “lifetime” proposition which allows you to transfer your old Prop 13 baseline to another property within the county. See you then!   707-565-1888

 

Sonoma County Clerk, Recorder and Assesor joins us this weekend.

Proposition 13 baseline year is a major factor in DETERMINING your Property Taxes. Had your property re-assessed? Remember, it can go UP quicker than if it is Prop 13 only! We have the man who can explain all of this with clarity on the show THIS Sunday, September 15th–Bill Rousseau–County Clear, Recorder and Assessor! The graph below is a “Follow-Along” for all of our listeners!

Remember, if your real estate was "re-assessed" due to an appeal or general assessment, and it is UNDER your "base-line" Prop 13 value, it will go UP faster than Prop 13's max 2% yearly increase.
Remember, if your real estate was “re-assessed” due to an appeal or general assessment, and it is UNDER your “base-line” Prop 13 value, it will go UP faster than Prop 13’s max 2% yearly increase.

 

Bill will answer ALL of your questions regarding Sonoma County Property Tax issues.
Bill will answer ALL of your questions regarding Sonoma County Property Tax issues.

This week on the show we are delighted to have William (Bill)  Rousseau, Clerk Recorder Assessor for Sonoma County on the air with us. We’ll discuss the current state of property tax assessments, Proposition 13 AND Proposition 8 and how both inter-play in property taxes on YOUR home. Also discussed will be the once “lifetime” proposition which allows you to transfer your old Prop 13 baseline to another property within the county. See you then!   707-565-1877

william.rousseau@sonoma-county.org

January 1st, 2013–Homeowner’s Bill of Rights goes into effect!!

Come this January 1st a whole new era in the foreclosure/distressed Market Place will come alive–the “Homeowner’s Bill of Rights”, most every state will have one, goes into effect. Some of the more dramatic highlights:

  • Tenants with valid leases written PRIOR to the foreclosure can have them REMAIN in effect. Tenant leases a home for a year, in writing, Seller goes belly-up, lease MUST be honored by new owner. However, any fraudulent work will have the lease dismissed.
  • You’ll see the Attorney’s circling as the HBR gives the homeowner broad reach–just how BROAD will be determined by the courts in the months to come. “Robo-signings” will be no more but if they happen and fraud is detected injunction relief will be the Homeowner’s tool! Here are all of the new “Rights”.

 

Big Medicine for a BIG Problem!