Prop 19 Explained | The END of Prop 13 and What it Means for You!

[@suzannecarlos177]

I appreciate your explanation of Prop 19 which is clear and concise. So many people do not know about Prop 19 until they receive the new tax bill when they inherit the family home or business.

[@gilfixlaw]

Thank you! Please spread this information far and wide so people don't get blindsided by the new tax. Appreciate your comment!

[@OOOTUBES]

It shocks me that this 1). Made it on the ballot 2). Passed. I remember voting no for this and was shocked when it passed. The end of Prop 13 is the whet dream of the California legislature. This is one step closer to it becoming reality.

[@gilfixlaw]

We have many clients who feel this way - we suspect many didn't understand the law when they voted for it. That being said, Prop 19 has many prominent backers, and is now law. And regardless of what happens with the law, there are solutions for families who plan ahead. Thanks for watching!

[@williewonka6694]

Mail-in ballot box stuffing by the Democrats is putting the country under one- party control.

[@bobmonson6432]

With mail in ballots there is no accouting for legit votes. It is not likely the will of the people. If we cant change this, you will see more if that.

[@martykimble9999]

That's because most voters are lazy and instead of reading the fine print will instead believe the propaganda we are often fead from the media. Remember the add for the prop that said it was directed at the greedy wealthy?

[@tapantera]

The other 3 replies must be Newsom compliments.

[@SteviePaints]

No matter how many taxes California imposes, it’s never enough.

[@gilfixlaw]

We hear this regularly from our clients!

[@johnl9977]

It doesn't seem to be making a dent in the incomes of the wealthy though. Saw a chart the other day that goes back to when "Trickle Down" started. The upper 10% are seeing their incomes going up parabolically, while the lower 90% is barely budging. All we get out of the Republicans though is "More tax cuts for the obscenely wealthy will fix everything!".

[@Bob-fk8vd]

@@johnl9977 Yet, the democrats keep raising taxes on the middle class. Democrats also make sure they protect the rich. Sadly, people like you fall for their lies. If democrats really cared about the middle class then why have they not lowered taxes on the middle class? The democrats in California can pass any bill without Republican support, so don’t blame republicans.

[@FARBOLUOS]

I don’t blame the corrupt politicians. It’s in their corrupt nature to screw the taxpayer. I blame the stupid gullible voters. That’s why they want all the migrants they can get so eventually you know which way they are going to vote.

[@roberthartford6614]

The democrat will always support and defend everything that's detrimental to America and the West. Always.

[@TM-eo8eb]

We must vote to overturn prop 19.

[@BigManganello]

Thank you for an excellent videos explaining the impact of Prop19, and the damage it has done to families, people are working to fix it.

[@gilfixlaw]

Our pleasure! Thank you for watching - our mission is to educate CA families about the impact of this new law - along with solutions already available, and situations where property taxes are still preserved under this law (e.g. a residence gets up to $1M in protection against reassessment if children live in it). We are now hearing from many in the community (some support Prop 19, some are against it) about this - regardless of one's views, it is important to understand the impact on inherited properties. Thanks again!

[@floydburney6060]

...... If what you mean by "People are working to fix it" that Prop 19 will in some way be repealed? Never gonna happen. I voted against this when it was on the ballot in 2018 but if you remember the campaign ads, it was full of scenes from the Paradise fire & firemen running around doing their thing. This prop was a smash & grab & it benefitted a small group of individuals (the Ca. Democrat party, the government they control, state govt workers & last but not least....Real Estate salespersons) This prop was a travesty it was legalized theft.

[@kimchee94112]

Property tax was OK when value was stapled but came the 70s home values went crazy high driving many seniors out of their own homes, hence Prop 13. Thank you Howard Jarvis. With Prop 19 I think it will drive more people out of their inheritance resulting in more renters, higher rents and more homeless. California Association of Realtors didn't do us any favors, forced sales translates to higher commission, more profit (6% commision on a $2 million home is $120,000 for a few weeks of work, crazy isn't it?). I'm worried about my kids inheritance once I'm gone.

[@pirateofpacific]

Yeah, people need to put proposition on ballet to limit Realtor's commission. They do t deserve more than 5 K or 7 K for each house sold. It is just simple repetitive filing of forms.

[@tapantera]

It's theft. They're just greedier than ever before. Pass a law to stop taxes. Can't even own your own home, AFTER you buy it.

[@cruz47144]

Hey grandpa? No one is paying 6% commission any longer

[@larryfisher7056]

​@@tapanteraMy thoughts exactly.

[@tBone20082]

get a family trust

[@suehammer6236]

You know dam well the people of California did not vote for this especially during the pandemic.

[@timfatout5339]

Correct - election fraud is firmly established in California.

[@dhui777]

The recent elections in CA have been rigged for sure. Nothing we can do about it though because most don’t believe it.

[@oldschoolamerican748]

Everyone on the State Dime (Teachers, Cops, Firefighters) that have large retirements, their Unions helped pay to pass this Prop to pad their pockets for the future. Keep working! 55% of California's unemployed are waiting for your tax money so that they can have a free phone, drugs, education and housing. All the things we worked for they get for free on our hard earned money/high taxes.

[@HartponderJr]

There are other taxes and fees attached to the property tax rolls that continue to rise each year.

[@johng4093]

Yes, like bond measures, for example. Always sold to voters as if they were free.

[@gilfixlaw]

Absolutely - and if one doesn't protect properties from being reassessed after inheritance, these add-on fees are even larger, because most are based on a percentage of the assessed value. For those who wish to preserve low property taxes: We have developed solutions. Otherwise, without planning, reassessments can be massive when children inherit under this new law!

[@Gigi2you]

Absolutely! I'm disgusted every time I get my bill. Our school district has some of the highest paid teachers in Ca. If the funds were actually going to the school staff I wouldn't complain but the funds are grossly misappropriated. The district office left a perfect good building for a brand new one. The monthly lease rent? 100k PER MONTH. Why not put some of those funds to rehab the older building that is PAID for? It's ironic a school district is so bad at MATH 😒 I home schooled my kids😂

[@dogsplantscarsneatstuff176]

I didn't know that Prop 13 was so gutted. Thanks for the education.

[@gilfixlaw]

It certainly was for next generation ownership of properties in California, if one owns rental property/a cabin, or a higher value home. If one's home is worth less than $1M more than the assessed value, children can still keep their parent's Prop 13 assessed value for property taxes, if the children live in the home. Otherwise, planning is key - we can help. Thanks for watching!

[@harleyb.birdwhisperer]

I wrote software to implement Prop. 13 - (roll back assessments then recast them under the new law). And have personally benefited by owning a house in Silicon Valley for 35+ years. The flaw I see is that reassessments happen when ownership changes, which statistically happens every ~8 years for houses, but far less often for business-owned property - so, for instance, the Chevron refinery acreage in Richmond, or the Bank of America headquarters in downtown San Francisco have never, and probably will never be reassessed. The solution is to split the tax roll and reassess business properties on a schedule unrelated to ownership transfer.

[@gilfixlaw]

Very interesting. There was an attempt to "split the rolls" and to eliminate Prop 13 protections for commercial properties. Voters rejected it fairly recently. Given the current state of the commercial real estate market in California, some argue that increases in property taxes for business properties could cause the market to collapse,. We shall see, and we will work to keep our viewers informed of changes to property tax law in CA, and the legal and estate planning tools to protect one's property. Thanks for watching!

[@harleyb.birdwhisperer]

@@gilfixlaw Splitting the roll becomes, as with most things, sticky when you try to draw the line. Do you reassess all rental property? If you do, you hurt mom-and-pop landlords, if you don’t REITs with hundreds of units skate. The rejection of splitting the roll was bought and paid for by the businesses it would have caught. Government needs $ to operate, has to get it somewhere. If the businesses are off limits, they have to go after the residents, and if some of the residents are sheltered, then the new guys catch the burden. Not that hard to figure out, not that easy to correct, though.

[@rcampbell4967]

I moved from Wisconsin. All private real estate was reassed by the taxing authority annually and property taxes were adjusted. The problem I see with that model in Califirnia is the volatility of property values could make a residence affordable one year and unaffordable the next. As a transplant to the state, I see underlying problems necessitating the government take every penny from its citizens. Namely, politicians care about every misguided, bat shit crazy initiative more than they care about their constituents. For instance, in the municipality I came from in Wisconsin, about half my property taxes went to schools. The public LA Unified public school system, in our experience, is horrific on all levels. I promise, no increase in revenue will go to fix this. They will support drug abuse and over doses. They will protect a bird. They will continue to enact costly policy which will be innefective to their misguided initiatives. We have corrupt children leading our state at all levels. And we'll keep reelecting them. The collapse has begun, people. Vote differently.

[@harleyb.birdwhisperer]

@@rcampbell4967 As long as you’re tossing grenades at the poor schools, save a few for the state lottery that was supposed to finance them painlessly forever. What we got instead: The ticket printers and game managers got rich, the players paid a tax on stupidity, and the schools got what the little boy shot at. WIth property taxes capped, the schools have resorted to adding on various ’special assessments’, so now you have a list of those on the tax bill on top of the base assessment.

[@TheRealoldcar]

Prop 19 was pushed and supported by the Realtor association. It had a smoke screen presentation that only clearly explained the fluffy side of it and not the main negative impact to the heirs , our children. It’s really sad. My kid won’t be able to afford the reassessment and the significant uplift in property tax. He would have to sell it which what the realtors want. Especially all the homes that were purchased a long time ago with relatively really low property tax in the Bay Area. Realtors (aka Sharks) love 19.

[@gilfixlaw]

We certainly see your frustration. We also know there is a broad spectrum of opinions about this issue within the realtor community - and we have many wonderful realtor clients. There are tools to preserve your low property taxes, despite Prop 19 - contact us if you'd like to explore options!

[@TheRealoldcar]

@@gilfixlaw . Appreciate that. Will keep that in mind and reach out to you as we try to digest all this information as it applies to my family situation.

[@catherineduong984]

This is unfair laws. We're Americans citizens people should do something to stop them who created the rediscurlous laws to control our American lives. Our lives are getting worse than ever. Please make America 🇺🇸 great again 🙏 😢 😢😢❤❤❤

[@Douglas-iz4de]

This is totally unfair to someone who wants to keep their childhood home but can’t afford the new property taxes. Having unstable property taxes could be used to kill the American dream by triggering inflation killing the economy then the government taking the homes with tax liens and selling homes back to Wall Street for pennies on the dollar. Owning a home is the cornerstone of most peoples lives, retirement, and legacy for their family.

[@ginatse-louie322]

It affects property ownership that could have long term negative repercussions.

[@gilfixlaw]

Prop 19 certainly presents challenges for inherited properties. While we have developed solutions for families to avoid this (even under the new law), we know many families do not understand the law, will not plan, and will face potentially large property tax reassessments when properties are inherited. Thanks for watching!

[@curiousgirl.4134]

That is exactly the plan via the UN Agenda 30 plan, they really accelerated things after 2020. I am upset at this!

[@ssaraccoii]

Better put it in a trust and name the kids as trustees. As long as it stays there, nothing should change.

[@cruz47144]

What??? People have the option of selling these homes the government doesn't have to take it. Where are you getting your information from? The back of a matchbook??

[@frankgrima]

When the people find out that they been duped will not be very kind to the politicians, what was approved can be disapproved

[@gilfixlaw]

Thanks for watching! This wasn't actually passed by politicians - it was passed by voters. Politicians are very limited in what they can do to impact this law, because it was a change to the California constitution.

[@cruz47144]

How do you expect to pay: teachers policeman and firefighters who want more salary every year and the people say give it to them. That's why we have these crazy laws. Maybe next time these people ask for salary increases say NO!!!!

[@zLigHt44]

​​@@gilfixlawThe wording was done by the politician's for the politician's, they don't control the higher base tax when the property is sold, the market does,as an example, John buys home for $100,000 and sells 15 years later for $500,000, now the new owners base is $5,000 tax the first year, and of course the bonds,sewer projects and other cost added, so really no reason to mess with prop.13 as sooner or later the state will get more money, the politician's never could have imagine such high real estate values/prices, so why are they not happy with what they already receive? it's totally wrong and evil to constantly raise taxes, it's stupid and juvenile thinking,it drives a civilized society to become a uncivilized society, and tricking the uneducated voters to pass bad laws is the lowest of the low.

[@soniag4516]

Sir you are either ill-informed or straight up lying. California politicians have been trying to do away with prop 13 for decades and during covid hoopla that they caused and thier cronies the realtors ass-o got together to fool the voters.

[@anthonymartinez18]

The lies, deceit and corruption of California politicians knows no bounds.

[@cruz47144]

Corrupt politicians? Maybe you should question: teachers, firefighters, and policemen who want more pay every year and people say give it to them but forget it's tax dollars that pay these huge salaries!!!

[@duckshot]

as the stupidity of California voters

[@barrya.6212]

WE NOW HAVE THIS to contend with >> copied and pasted >>> "We just got word that a bill (SB 789) has been sent to Governor Gavin Newsom that will move the two bills (ACA-1 and ACA-13) CA Democrats are trying to pass to gut Prop 13 and raise your taxes from the March 2024 ballot to the November 2024 ballot. Here’s what this means for our fight to Protect Prop 13 and how you can help: The Good News: Moving the public vote from March to November 2024 gives us a bit more time to ramp up our campaign and allows us to consolidate our fight to protect Prop 13 by 1) defeating ACA-1 and ACA-13 while 2) passing the California Taxpayer Protection Initiative. All three of these ballot measures will be on the same ballot which is very efficient. The Bad News: Because it is the Presidential general election, the November 2024 voter turnout is going to be MUCH bigger than the March 2024 voter turnout which is just a primary. We’re talking about now having to reach DOUBLE the number of voters - and that means our campaign budget will have to be even bigger to reach more voters. With the fate of Prop 13 and the threat of massive tax hikes on the line, can you chip in a contribution of any amount today? Unlike the Democrats who have the advantage of deep pockets from special interests and help from the biased media, we have to raise our campaign funds every week and build up our campaign war chest to protect Prop 13 and block these tax hikes so please chip in a contribution of any amount today! Carl DeMaio Chairman - Reform California

[@whatshappening177]

Dude people voted this in. This is how stupid people are. They don't read. Nor do they understand anything that they are voting for.

[@tapantera]

It's the corrupt unions. They don't care about the employees. Second arm of the local government/politicians. SFPOA bought a multi million dollar restaurant. BK'd the F out of it. Should have just bought a laundromat... @@cruz47144

[@salvadorsoriano4734]

Thank you for this invaluable information.

[@gilfixlaw]

We are glad to be of service! Thank you for watching, and stay tuned for more free legal educational videos with "insider" tips!

[@edhuff6780]

From the day 13 passed California has tried to defeat its purpose

[@gilfixlaw]

Thanks for watching! The passage of Prop 19 eroded Prop 13 protections for children who inherit property from their parents, but solutions do exist, and we can help. Stay tuned for more free educational videos!

[@ginatse-louie322]

Interesting how much illusory effect exists around Prop 13. Check out Serrano v Priest. Courts mandated equal funding of education. Prop 13 facilitated.

[@ericknoblauch9195]

From the day it passed it was the democrats who were trying to defeat it. The cities and counties want to have the tax revenue coming into the coffers so they can spend it. The original prop 13 was written and proposed by the apartment owners association. Back in 1978 when it passed taxes were going up every year with steep increases. When that happened, apartment rents were increasing, and the apartment owners association came up with this ballot measure. When property taxes go up, rents also increase.

[@funkyfurballs1078]

Those were the good old days!

[@gluehead6327]

State and local govt claim they don’t have enough income while wasting money like a drunken sailor. The amount of govt waste is mind numbing

[@jannarkiewicz633]

My house is 3.4 million... The math in your example was spot on for my case. I know you guy from Len Tillem. He is missed.

[@gilfixlaw]

We hope it was useful for you! We can certainly help you to protect your low property taxes if this is a goal - contact us if you'd like to explore it. And we loved Len Tillem! We miss him very much as well. Michael Gilfix was a regular guest on his very popular radio show and Len became a great friend. Thank you for watching, and for the kind words.

[@jannarkiewicz633]

@@gilfixlaw I retained your firm when my step father had dementia (likely early 2000s). I'm still moving some chess pieces before I made estate plan.

[@PeteEmrich]

A technical issue to your commentary is that the Props do not protect taxes, they protect the assessed value (Prop 13 caps the annual increase in AV change to a max of 2%, but allows a drop into the negatives if the declared CPI drops). If voters vote for various bonded indebtedness and they often do, then the taxes themselves easily can exceed a 2% increase...and when various direct assessments (these have nothing to do with the assessed value, but are generally levied on physical characteristics...lot size, improvement size e.g.) are levied on the secured tax bill there can be even more accelerated changes in the taxation.

[@gilfixlaw]

Fair points - Prop 13 and Prop 19 do only affect assessed values, and there are some other nuanced issues that can subtly affect tax rates, semi-independent of assessed values. That being said, our focus is on the "big picture" of how this new law affects Californians, with some examples to bring these concepts to life in a general, educational way. Thank you for watching!

[@ibberman]

The whole point was, if you keep your home until you get old and cant work any more/retire, you won't loose the home because of taxes.

[@tdgdbs1]

Look at the way tax is assessed, it is a cash cow for the county. Commie don't give a shxt about your old age.

[@gilfixlaw]

Prop 19 doesn't affect Prop 13 protections as long as a CA owner is still living and retains ownership. Prop 19 only allows for tax increases when a property is transferred or inherited within a family. So those who wish to simply hold onto their homes for the rest of their lives are not impacted. Thanks for watching!

[@Gregarious3]

Thank you for being the other guy that remembered what was happening at the time. All the other bits that piggybacked on the original intent is BS. Either we want cofistatory taxes or vote differently.

[@soniag4516]

And to pass onto to your children/ grandchildren.

[@randym1544]

The sad reality to all of those who voted for prop 19 and were renters, when the kids inherit that property they are going to raise your rent to cover those taxes, or sell the property because it is no longer economically viable. The only winner here is the state with increased revenue.

[@tapantera]

They can't see a future with hope, where they can be in a better position. They may be right, but it's still short sighted, I believe. People get a small victory, and it's usurped by big money, corruption in politics.

[@gilfixlaw]

One reason Prop 19 was marketed, and passed, was the argument that it will force many families to sell when parents pass away, leading to more properties available to new buyers, and more transactions for those involved in real estate (whether one thinks it is fair or not.) Thanks for watching!

[@yumaychang]

I own rental properties, but I still support prop 19 because it makes the world a fairer place for all.

[@soniag4516]

And the lazy BLOODSUCKING REALTORS

[@shaun1258]

perfect, you can probably give up those rental properties to somebody else who can’t afford it! Now That would be fair!

[@catswisker4835]

What if the child has lived in the house all of their life ???

[@gilfixlaw]

Good question - we'd need to know more details about how title is held, among other things. Generally speaking, it is irrelevant if a child has lived in a house all their life - the same test applies. If the child inherits and makes the house their residence within 1 year of getting title, they should benefit from the $1M in fair market value protection from a reassessment. If the house is worth more than $1M over the assessed value, the additional value would almost certainly be reassessed - unless planning steps were taken ahead of time. This is just a surface level view - we'd need to know more to really opine with details. Contact us if you'd like to explore this issue for your own situation. Thanks for watching!

[@janisbiksa6802]

The original Prop 13, had NO protection for parent child inheritance transfers. The law was changed to exempt such transfers, now it has been changed back. “The are no solutions, there are only tradeoffs” - Thomas Sowell. The reason Prop 13 was passed was to prevent, residents from being evicted for higher taxes based on annual reassessment. The culprit is government hungry for every dollar that it can collect.

[@joesixpack2878]

prop 13 was intended to keep the ponzi going. What happens when people can't afford their property taxes? They sell, flooding the market with supply. Supply greater than demand, and you get a decrease in home prices. %40 of homes in America are owned by boomers, yet they are only %20 of the population. The correct thing to do would be mark to market homes and tax them on today's value. You'd get the true value of the home, and maybe we wouldn't have declining birth rates in this country since younger generations would be able to afford a home to grow a family. The good thing is boomer deaths should be accelerating within the next 20-30 years.

[@themillennialmindsetchanne5937]

Great Breakdown!

[@gilfixlaw]

We are glad you found it useful! Legal solutions exist - contact us to learn more - and subscribe and stay tune for more free educational videos!

[@ronaldsamontanez8592]

We just moved in to our house in Roseville. When should we plan or do the protecting of our property from high taxes for our kids?

[@gilfixlaw]

Hi Ronald - this totally depends on where your taxes are today vs. the value of your home. If you recently purchased the home, and if taxes are assessed at a value close to the house's fair market value, you likely don't need to take any steps now. If, however, the market value of the home is significantly higher than the assessed value, you may need to plan right away. If your children move into the home within 1 year and make it their residence after you pass, up to $1M (plus inflation) in fair market value should be protected from a reassessment. Our firm has developed incredible solutions for families if they won't fall under that exemption, feel free to reach out to us at gilfix.com if you'd like to explore in more detail!

[@michaeleastman182]

Unfortunately, the people who voted for this were largely duped into voting for it because of the marketing. Marketing went something like this: "If you're retired, you'd want to transfer your Prop 13 exemption to another house - wouldn't you?" And the people who were barely paying attention and didn't bother to read the proposition became suckers and voila! - we have children of parents who paid off their house and maintained it for 30, 40, 50 years who have to make very tough choices. The arrogance of governments who think they are ENTITLED to money from houses that they didn't pay a nickel for is just sickening.

[@gilfixlaw]

We certainly agree that many likely didn't understand the implications of Prop 19. We hope our video helped to spell out the impact of this new law, and the fact that we can still preserve low property taxes for the next generation (but yes, it does now require expert help, unless one is within the $1M fair market value protection for a residence.) Thanks for watching!

[@alexiadeligianni1654]

Yes. The commercials were deceptive and the language of the ballot initiative was confusing. The truth was buried in the fine print.

[@kittycat6195]

Prop 13 WAS AWESOME!!!!

[@gilfixlaw]

Prop 13 is still law in California - but no doubt Prop 19 makes it much harder for families to pass along appreciated real estate to their children with Prop 13 protections - but there are ways to address it. Thanks for watching!

[@joesixpack2878]

@@gilfixlaw prop 13 is great for the boomer generation who bought their home for a pack of strawberries.

[@lfuentes4098]

So are rentals being reassessed now or when the owner dies? I had no idea.

[@gilfixlaw]

Correct - without planning (we can help if you have questions and wish to save rentals - we've developed solutions) there are now ZERO protections for rentals from being fully reassessed under this new law, after transfer. Many were unaware of this. Thanks for watching!

[@shotelco]

Raised in California, lived in California, but moved to Nevada about 18 years ago, as I could no longer afford California. I was made aware of Prop 19 by the attorney I engaged to settle my parents trust, after the last one passed on late last year. She had suggested there may be an effort to overturn this aspect of Prop 19. In doing some research, I see there is no real momentum to change this either judicially or via the ballot box. Thus, am forced to sell the family home. The question I have, and I think its a fair question: Aren't Any and all estate planning strategies applied today to mitigate future scenarios like this - as Perry Mason would say - effectively be “incompetent, irrelevant and immaterial”? The Citizens who passed Prop 13 in the 70's, and Prop 58 in 2016 assumed these to be "forever laws". The reality is there is no "forever law," and thus if the State legislature, Courts, fickle voters, or special interest/PACS decide to make more modifications, isn't it is _Impossible_ to "Future Proof" with any Estate Planning strategy?

[@gilfixlaw]

Interesting thoughts! We can never predict how laws will evolve. We agree that it is very unlikely that Prop 19 will be overturned anytime soon. While no one can predict how laws will evolve, we CAN guarantee this: Lack of action - a lack of planning for prop 19, for example, is virtually guaranteed failure. Taking action with experts gives families the best chance to preserve family assets. Laws can change, but our firm always works to develop solutions. We have developed extraordinary solutions for Prop 19, but they require that families plan ahead, before parents pass away. Our advise: Control what you can control. Work with experts to do the best that you can. "Hope" for changes in law is not a strategy. Thanks for watching!

[@nicfirebear]

It’s interesting that so many people are oblivious to the obvious reasons prop 19 passed. While realtors were the “monied” interest that put this forward, the inheritance aspect of prop 13 was essentially subsidizing the children of the elderly home owners this was meant to keep property taxes low on. For everyone acting like they were “owed” their parents tax assessment, your essentially saying, “hey not only do I get this family wealth asset, I should get a significantly lower property tax than the person who would have to buy it.” Significantly lower property taxes on the properties inherited had to be made up by everyone else that had to purchase a house on the market. All those people voted for it because they weren’t going to inherit and they didn’t want to subsidize inherited wealth. And I understand this as someone who’s inheriting a California home. 🤷‍♂️

[@gilfixlaw]

We certainly see this point of view - and it's important to understand the arguments on both sides of this law. Certainly, many voters supported Prop 19 for many of the reasons you outline above. That being said, many are still ignorant about the effects of this law. Regardless of one's views, it is important to understand how laws affect property ownership in California. It is our mission to help educate our community about laws and planning issues that affect them. Thanks for watching!

[@kathyjohnson1911]

How nice it must be for you that you can afford the taxes on an inherited house. Obviously, you have no empathy for children who have no other way to ever own a home.

[@nicfirebear]

@@kathyjohnson1911 You can still live in your parents house and inherit their property taxes. What you cannot do, is rent it out to someone else with that tax rate in place. This literally keeps the rest of California from subsidizing landlords. Calm down trust funds. LOL!

[@kathyjohnson1911]

@@nicfirebear What you cannot do is move the tax break to another home. Can no longer sell home and purchase another for same price (or less) in another county in Ca. This. Is. What. Sucks. You are saying you’re a trust fund baby, therefore, none of this matters to you. But thx for mansplaining it 🙄

[@JainRedmond-t9f]

what does plan ahead mean?

[@gilfixlaw]

Planning ahead can mean, primarily, 1 of 2 things: 1) To be sure that children benefit from the $1M in fair market value protection from reassessment for a primary residence (as allowed under prop 19 - take assessed value, add $1M, this can all be protected from reassessment) you must be sure a property is a parent's residence, and that a child makes it their residence shortly after a parent passing or transferring the property. 2) Working with an expert on other ways to deal with this new law. We have developed solutions for families who wish to preserve low property taxes beyond the option outlined above, but it requires planning ahead, and direct meetings to go over specifics of one's situation. We can help! Thanks for watching!

[@StalkedByLosers]

The protected tax is really important because part of the American Dream is to work, buy your home and after 30 years you can retire and live off retirement. But without the protected tax, you won't even be able to pay the reassessed tax with retirement. I mean you buy a house for $100k and by the time you retire it is assessed at $1Million...the tax rate is the same as a full time minimum wage job! So you can't retire there. Also if you can't transfer thst protection to family, the family may also not be able to afford the tax so it will be a forced sale.

[@gilfixlaw]

To be clear, Prop 19 doesn't impact one's taxes while they are still living. Prop 13 is still in place to keep property taxes low as long as one lives and/or holds their property. So one's ability to keep their low assessed value is still in place. Prop 19 only affects inherited properties, limiting property tax reassessment protections for the next generation. We have tools to address this as well. Thanks for watching!

[@philreynolds6018]

Dineyland in Calif. is on Prop 13

[@gilfixlaw]

Correct - Prop 13 applies to all types of California properties - homes, rentals, and businesses. Prop 19 affects properties after transfers or inheritance.

[@sureshvelu]

For Prop 19 to become effective when you are 55 do you have to be living in your primary residence at the time of buying your new property ?

[@gilfixlaw]

Technically, yes, you should be living in your primary residence to be sure that you can take advantage of Prop 19s intra-state low property tax benefits. There are some exceptions, but these require analysis and are nuanced. Thanks for watching!

[@jimho7260]

Did I understand the video correctly in that if the parents' house becomes the child's primary residence and the child gets to keep the parents' property tax BUT at some later date (months or even several years later) the child moves out without selling, then the property is reassessed?

[@gilfixlaw]

If a child lives in the parents' residence, the first $1 million in fair market value, beyond the assessed value, is protected from property tax reassessments (with some inflation adjustments.) The child must move in within 1 year of the parents' passing and properly document this. If they move out later and hold the property as a rental, yes, the property could be reassessed at that time. We have planning tools that can assist with this, however, if parents plan ahead. Thanks for watching!

[@warrenpeece1726]

Oh please! CA governments NEED more taxes because of all the things they are not fixing! For example, SF is spending $700M this year to not fix their homeless crisis. LA is spending $1.3 BILLION - 10% of their entire city budget - to not fix THEIR homeless problem. And the state kicks in another $4B annually to help not fix the homeless crisis. And, of course, all those carbon taxes in CA will certainly not fix the climate crisis because - it just takes more cash!

[@LarryH49]

And you can only deduct $10,000 of state and local taxes. The state income tax is usually more than $10,000 so you can’t write off any property taxes.

[@gilfixlaw]

Great point! We tried to point this out in the video - but the lack of deductibility of property taxes makes potential increases even more painful. We have helped many families to deal with this, but it takes planning in advance. The $10k cap on state and local tax deductions (against Federal income taxes) is punishing to many Californians. Thanks for watching!

[@janettevalenzuela4663]

What would happen if the primary residence gets gutted and a brand new home is rebuilt on the land? Would the first 1 Million still be protected or would the entire property be reassessed as a new property and lose the protections?

[@gilfixlaw]

Hi Janette - if a primary residence is gutted and rebuilt, it would be reassessed, regardless of Prop 19, based on the county's estimates for the increase in value. The $1M protection from reassessment for the next generation would still apply, if it was a residence and children live there, but might not be as helpful if the assessed value already increased. We'd need to know more details to give true guidance, however. Contact us if you'd like to discuss this in more detail. Thanks for watching!

[@CSGATI]

Real Estate does not go up in value the Dollar just goes down.

[@gilfixlaw]

Interesting thought! Do you think this will continue? Assuming it does, the impact of property tax increases will become even more challenging, since property taxes are linked to the fair market value of a property - if impacted by Prop 19. Thanks for watching!

[@stopper90004]

Bitcoin fixes that. Fixed supply = no inflation.

[@Ekam-Sat]

Property tax can be really harmful because it compounds over time. This means that every year, you pay tax not just on the original value of your property, but also on the tax you’ve already paid from previous years. So, over time, your tax bill grows bigger and bigger, even if your property value doesn’t change much. This can make it harder to afford your home and can force people to sell, even if they don’t want to. It’s like a snowball effect that gets harder to manage the longer you own the property.

[@roberthartford6614]

It'll be challenged. My feeling is that Prop 13 will stand.

[@gilfixlaw]

We will see! We don't see a direct threat to Prop 13 (yet!) but there are certainly many who are very unhappy with Prop 19. That being said, there are strategies available to families who wish to preserve low property taxes for the next generation - we've helped many California families with this. Thanks for watching!

[@JayJay-iy2nl]

The Howard Jarvis Taxpayer Association is currently gathering signatures to overturn Prop 19. It will keep the good parts like helping fire victims, seniors and the severely disabled and restore will the inheritance part too. Which helps the families of car accident victims too. Go to Howard Jarvis Taxpayer Association and print out their petition black and blue ink only! Read all the instructions and send it back to them.

[@soniag4516]

The sleeping giants my generation who foughth and won prop 13 are waking up again so watch out all greedy bastards is all I'm going to say. This is one reas8n why the govts tried to murder us with covudu but we got wise and survived. God fights for us, our children and thier inheritance. We are not rich, most if us own one home and no one shall tax my children out of thier inheritance. Bloody cursed greedy animals will pay, it's coming.

[@clarkleakins879]

Are there other states with similar prop 19? Are there states WITHOUT prop 19 type of tax? Move in within a year "protects" the primary residence. What about a rental property in a trust? Child/trustee moves in within a year, also "protects" taxes?

[@gilfixlaw]

Hi Clark! Most states do not have property tax protections for inherited properties (there may be some exceptions). Additionally, most states don't have Prop 13 protections - meaning most reassess property taxes every year, based on the estimated fair market value of a property in real time. California is one of the only states (if not *the* only) in America with Prop 13 type protections from property tax increases. Thus, Prop 19 wouldn't apply in most states - a reassessment of an inherited property in Texas, for example, would likely not be an issue - because Texas typically raises (or lowers) property taxes each year to match fair market value, regardless of any change in ownership. Most properties in other states are reassessed all the time, based on fair market value, regardless of changes in ownership. For the Prop 19 $1M protection to apply, a property must be a parent's residence (regardless of whether held in a trust or not), and a child must move in within a year. There are other tools available to protect from property tax increases, even for rentals, and even if a child doesn't live in the property - contact us if you'd like to learn more. Thanks for watching!

[@snort455]

If Prop 13 is still in effect, why is my property tax going up 20% each year in California?

[@howard5992]

You must have a very low base valuation.

[@joesixpack2878]

aren't home values up like %50 within the last 5 years in California? What's all the crying about? Greed, greed, and more greed.

[@gluehead6327]

**Not looking for legal advise** but what about placing your home into an LLC where you can name your kids the managing member

[@LAKitchen]

in CA you have to submit form BOE- something to report over 50% change in LLC members (that i heard) and that triggers reassessment

[@gilfixlaw]

You must be *VERY* careful about trying to use entities and creating management structures on your own. We have seen many families try to do this on their own, with very bad results. Minor errors can result in full and immediate reassessments of property. Make sure to work with an expert on any entity planning for properties. We have helped many families with this. Thanks for watching!

[@patriciamays8244]

Living trust prevents taxes against property passing to children after you die.

[@TheFrog-cs3ot]

​@@patriciamays8244this is incorrect, if someone told you this, they explained the law incorrectly

[@cyanginpedro]

@@patriciamays8244 totally false. did you even watch the video?

[@shelleycharlesworth5177]

My mortgage free house is in my trust. No children. If I leave it to a friend, what about the property taxes? Will my home be fully re-assessed?

[@PeteEmrich]

In Ca, yes, 100% to fair market full cash value

[@shelleycharlesworth5177]

ok thanks - so there are no loopholes to avoid this ? My friend lives with me and has for 5 years.@@PeteEmrich

[@gilfixlaw]

Generally speaking: Yes - if a property goes to a non child or non spouse, the portion transferred will almost certainly will be reassessed at fair market value. That being said, there are strategies that can prevent reassessments, with planning. Contact us if you'd like to discuss directly. Thanks for watching!

[@PeteEmrich]

Indebtedness (mortgage e.g.) and friends domiciling situation are irrelevant to what is deemed a change of ownership by law. @@shelleycharlesworth5177

[@somestuffithoughtyoumightl6985]

At 14:01 , he starts to explain “proper planning”

[@Supertrack238]

I plan on staying in my home, have no children, and am married. Do I need to plan for anything in light of Prop. 13/19?

[@gilfixlaw]

You should not face any property tax increases under Prop 19, and may benefit from it if you move within the state. No planning needed for your own property taxes, if you simply stay in your home. There are tools to keep your existing property taxes even for non-family members who inherit your house - contact us if you'd like to learn more about that. Thanks for watching!

[@sandiweidler8862]

What about transferring from a stepmom to her stepson?

[@gilfixlaw]

If not a legal child, the parent-child $1M protection under Prop 19 likely would not apply (we'd need to learn more to give true guidance, however). Some of our clients have formally adopted step-children to ensure that the parent-child protections apply, and there are other tools available to ensure that step-children can keep low property taxes - contact us if you'd like to learn more. Thanks for watching!

[@catherineduong984]

Please help to make America great again 🙏 ❤️ 😢😢😢

[@mcq9667]

Will my property tax increase if I change my initial 60-40 home co-ownership with my sister to my partner? I've already paid off the house.

[@gilfixlaw]

Generally speaking (we obviously cannot opine on your specific situation unless we worked directly with you and knew all facts), a transfer of any share of ownership between non spouses, that is not parent-child will cause a reassessment of the portion transferred. Non parent-child transfers were not affected by Prop 19 - they have always been unprotected from reassessments in California (unless parent-child). There are strategies to avoid reassessments, even in this situation, however. Contact us directly if you'd like more specific guidance. Thanks for watching!

[@walteregeaux]

THAT might explain the big bump in California homelessness

[@joesixpack2878]

all homeowners care about is making sure their property values go up. That's all that matters.

[@danformanek3062]

So could you put your child on the deed before you pass?

[@gilfixlaw]

We would not typically recommend this - this could trigger an immediate reassessment of property taxes and could result in the loss of the key "step up" in cost basis (which can eliminate capital gains tax exposure). We have helped 100s of California families with this issue - there are ways to avoid reassessments, but we do not typically recommend adding a child to title while you are living, for this purpose. We'd need to know more about your situation to give proper guidance, however, so reach out to us at gilfix.com if you'd like to set a meeting with one of our attorneys. Thanks for watching!

[@islandmonusvi]

We pay 10x more property taxes than our neighbor who has Prop13 and similar lot developments…and we have $100k in permitting whereas, Prop13 property has zero permitting costs for same development. Prop13 has devasted the tax base of this rural community. Especially, after the devastating CZU Fires which burned down Prop13 homes which were substantially under insured. Recovery construction will include the higher taxation when Prop13 is lost. Therefore, only 15% of the owners can afford to permit&rebuild. BTW, Prop13 only applies to property owned prior to cut-off date of 1979.

[@ericknoblauch9195]

One provision in prop 13 is they cannot increase the valuation they base the tax on more than 2 percent a year. This provision applies to everyone, and it makes no difference when you buy or own the home. Our home was purchased in 2009, and the assessed value has not increased more than 2 percent a year. Real estate has more than doubled since then. The 2 percent provision protects everyone. Before prop 13, my mother's tax bill was going up 20 percent a year, and was higher than the rate of inflation at the time. It was because the cities and counties wanted to spend, spend,spend the money.

[@pirateofpacific]

Thanks for correcting that ignorant person who thought that he knows it all. He is mad because he has to pay more tax than his neighbor.

[@dagnytaggart5216]

As for the comment about “permitting costs” it will cost the same for everyone regardless of one’s prop 13 value. Even the new construction will be reassessed at current market value. And since the assessed value increases a maximum of 2% per year it takes quite a few years for it to be beneficial to the taxpayer. So really, the ones benefiting the most from prop 13 are the seniors. The person commenting will be very grateful for prop 13 if they continue to own their property 20 years from now. And their neighbor, who they’re jealous of, will be long gone, and their new neighbor will be complaining how unfair it is that the older neighbor next door pays less taxes. In the end it’s usually the grandparents who are benefiting.

[@soniag4516]

Correct.

[@winkieblink7625]

I would like Property Taxes to be cut MUCH LOWER for senior citizens over the age of 70 or 75 for properties bought by them in the last 20 years and they have social security income and limited other monthly income. Those taxes could be well over 15-20K a year as it stands now.

[@gilfixlaw]

Property taxes can be very challenging. That being said, Prop 19 did not impact property taxes for older Californians who hold their property - Prop 13 protections still apply. Prop 19, in fact, made it easier for Californians over 55 to move within the state and take their low property taxes with them to new properties. But it certainly has a huge impact on inherited properties. Thanks for watching!

[@SGPhil597]

@@gilfixlawthanks for the explanation, quite a bit people here don’t really understand the pros/cons of prop 19.

[@spectroman71]

So wait - did Prop 19 replace Prop 13 and now if I'm set to inherit a home worth more than 1M I'm screwed?

[@gilfixlaw]

Prop 13 is still law. Prop 19 only presents a problem when a property is transferred from parent-child. These transfers used to be exempt from property tax increases - prop 19 dramatically limits the protection. Talk to us if you have questions - we've helped 100s of California families with this issue!

[@patmcbride9853]

Every story about what the Pinheads under the dome in Sacto and Greasy Gavin are doing makes me happier that I escaped Kalifornistan for life in a freer state. The politicians are obviously NOT the only problem because idiot voters vote for these horrible propositions and the politicians making things worse.

[@tapantera]

The majority are not voting for this. Marion Barry has NOTHING on Newsom. Newsom is bought and paid for.

[@cruz47144]

Yes its dumb voters always voting to give government workers pay increases that come from tax collection

[@patriciamays8244]

Try the deep south population. Beyond idiot for the most part.

[@kennethmcgurn3830]

This assures homeowners will eventually pay up as they move or downsize. Their only other option is to take all that increased value is to leave the state and spend that profit elsewhere. Who keeps their massive tax break under Prop 19? Big corporations. Corp headquarters and lands under prop 13 pay pennies per $1k. That's why sales and income taxes have to keep rising.

[@gilfixlaw]

Interesting points - you are correct that Prop 19 doesn't hit corporations. Prop 19 does allow older Californians, or those with disabilities, to move within the state and keep low assessed values. Most other states have zero property tax protections, so California is still favorable in that respect (since Prop 13 still is in effect). But Prop 19 certainly "guts" protections for the next generation - unless families work with experts to plan ahead (we've helped many California families). Thanks for watching!

[@advancetotabletop5328]

If your child wants to become a teacher or nurse, they won‘t be able to afford the house they grew up in.

[@gilfixlaw]

Without planning - you are 100% correct! There are tools to preserve low taxes (we can help!), but many families are unaware of this, which will force many families to sell their "family homes" when they see tax increases. Thanks for watching!

[@tara8909]

I am a nurse and that’s the boat I am now in

[@Misaka-gt5yj]

@@gilfixlaw Problem is those families who sell their homes and the buyer will then see that new tax reassessment and no longer want to buy. This shit is self limiting

[@TheK9Shepherd]

Great video and explanation. So who is the one that asses the house for FMV after death? And will that be the same FMV that will be used for the step up in basis? My wife and I live in my wife's mom's house. Mom has the house and all property in a trust. Current taxes are based on let's say $600,000 If the FMV is assessed at 1.5 million, and the first million is protected, does that mean her taxes will actually go down or remain the same? (based on $1,500,000-$1,000,000 = $500,000)? I am guessing it won't go down as there must be some protections for the state to not lose tax revenue? Or what if the FMV is assessed at $1,600,000, our taxes could remain the same? Also I take it that even though the house is in a trust, and we don't dissolve the trust, we can't keep the same tax rate can we? Thanks !

[@gilfixlaw]

Thanks for the kind words! It's unclear how counties decide on the fair market value for a home when a parent passes, each county may have their own approach, but it likely should be very similar to the "stepped up basis" value (usually we help families to get formal appraisals for tax filings for this.) Regarding the $1m in property tax reassessment protection - it would not lower property taxes, but in your example above, if children live in the residence after a parent passes, the $1M in protection means there should be no reassessment - the house would fall under the protections of Prop 19. But taxes would not go down, unfortunately. Whether a house is in a living trust or not should have no impact on reassessments. There are other tools we can use to avoid reassessments, but it requires more than a trust. This is all based on basic information provided above and isn't legal advice, of course - we'd need to see the whole situation to provide complete guidance. But we hope this is helpful - and thanks for watching!

[@TheK9Shepherd]

@@gilfixlaw thank you !! Yeah I figured taxes won’t go down (counties can’t lose that tax base) . But theoretically, could they stay the same? If after the $1 million allowance the remainder of the FMV is the same as the assessment now, taxes wouldn’t go up right?

[@billtuckjr2834]

Don`t forget they add as many fees as they like. Like Fire Department fee. When 19 passed we decided to move! We have been gone 16 months! What a re-leaf. We now live in the warmest city in Wyoming. Thermopolis. Our property taxes are .56 and no fees. Very Low Crime and Nice people who keep to themselves. The beauty of the State is overpowering. It took a year or so to adjust! But were so happy here. Our home cost $ 189 000.00 our taxes are $ 1350.00 per year. Our same home in California would cost $ 600 000.00 With property taxes around $ 7000.00 per year. Right now California is in debt 46 Billion and Growing. They will find new taxes and fees to pay for it! And no one can stop them. If Your thinking about getting out? Geter Done!!

[@gilfixlaw]

Wyoming is indeed a gorgeous state - everything in life is a tradeoff. We have several clients who have decided to leave California in recent years - many because of our state's high income taxes. We love our state, and hope people stay - but we understand that taxes can be quite challenging. It is our mission to educate Californians about our state's laws, and to let folks know about what they can do to protect their property for their kids - we can help with that! Regardless, we hope you are enjoying life in Wyoming - thanks for watching!

[@billtuckjr2834]

@@gilfixlaw Thank You for your comment. I forgot about taxes? The home we purchased in Wyoming was $ 189 000.00 In California it would cost $ 600 000.00 Our Property Taxes here in Wyoming are $ 13 00.00 per year in California they would be 7000.00 per year So as retirees we just could not afford the taxes. Lets face it California does not want nor need retirees. They need workers who pay taxes. So it was a win win for us to leave. Good for us and Wyoming and Good for the new hard working family who took our place and good or California! I still Love the old California and some day as a California Veteran my Ashes will be coming home to The Riverside National Cemetery.

[@billruss6704]

So now the kids will just need to bury their parents in the back yard and forget to tell anyone.

[@gilfixlaw]

We certainly wouldn't recommend this!

[@kpadalldotablet1009]

Wait, even under Prop 13 our property was reassessed regularly over the years in Northern CA (Humboldt).

[@gilfixlaw]

Prop 13 allows for 2% increases in property taxes each year, with some exceptions (e.g. if value went down in previous years, the state can "make up" for previous drops with faster increases.) And if a property is improved or changed, this can also cause a reassessment. Thanks for watching!

[@kpadalldotablet1009]

@@gilfixlaw That was my mistake for not being clear. However, Prop13 does not allow a 2% increase in "property taxes" each year. Under Prop 13, all real property has established base year values, a restricted rate of increase on assessments of no greater than 2% each year (not "property" tax, but assessment increases for the property's value), and a limit on property taxes to 1% of the assessed value. In other words, the value of property can go up a maximum of 2% a year, but the tax levied on the assessed value is still capped at 1% of the total.

[@patriciamays8244]

OMG Humboldt is one of the dirt cheapest places in California,,! 😂

[@jamesdewer]

What if our child is married and to them alone excluding the inlaws leave your estatem Though they are married?

[@gilfixlaw]

Hi James - we'd have to discuss your situation directly to truly offer guidance. In general, the parent-child $1M exemption for a residence (where a child lives in the residence) should apply, regardless of whether your child is married or not - as long as the property goes to your child. Leaving a property to an in law likely would not qualify for the $1m property tax reassessment exemption. **We have developed solutions that can keep property taxes low, regardless of who you leave a property to. Our solutions can lock in low property taxes for the next generation, regardless of whether they are your child/niece/nephew/in-law. Contact us if you'd like to learn more!

[@cidhomerimperialpneulemen2107]

Yeah and how much are these experts going to cost?

[@gilfixlaw]

Thanks for your inquiry - it depends on the situation, the ownership structure of the home, the size of the owner's estate, their cost basis, and a number of other tax and estate planning factors. There are no shortcuts. These are incredibly high stakes issues, and planning ahead can save the family home, r other property, from massive tax increases. Small mistakes in planning can result in immediate and massive tax increases, or partial solutions that cause large problems later - don't try this at home! If you'd like to explore your own situation, and potential solutions and fees, reach out to us at gilfix.com. Thanks for watching!

[@manp1039]

side benefit.. this could reduce the assessed value? because the value of these homes will be less because prop 19? perhaps also this will reduce rents? google bard commentary on prop 19 and 13: Proposition 19 is a California law that was passed in 2020 and went into effect in 2021. It amends Proposition 13, which was passed in 1978 and capped property taxes at 1% of assessed value, plus local additions. Prop 19 makes several changes to Prop 13, including: Allowing homeowners over the age of 55, people with severe disabilities, and victims of wildfires or other natural disasters to transfer their property tax base to a new primary residence of equal or lesser value, anywhere in California. Closing the "parent-child exclusion" loophole, which allowed parents to transfer their property tax base to their children without reassessment. Under Prop 19, children can only inherit their parents' property tax base if they live on the property as their primary residence. Requiring certain types of commercial property to be reassessed at market value when transferred. Prop 19 was designed to make California's property tax system more equitable and to generate additional revenue for schools and local governments. However, it has been criticized by some for making it more difficult for homeowners to afford to stay in their homes, especially in areas where property values have increased significantly. Overall, Prop 19 is a complex law with a number of implications for homeowners and businesses in California. It is important to consult with a tax professional to understand how Prop 19 may affect you specifically.

[@gilfixlaw]

This may be true - Prop 19 will increasingly spur families to sell inherited properties, when they see property taxes increase dramatically after parents' pass away (unless they work with experts - we can help to prevent this!) - thus, many who don't plan ahead will be forced to sell, increasing the number of available properties on the market, potentially reducing property values. We suspect this won't have a massive effect on values - only a small % of properties are inherited each year - but no doubt it will likely increase available inventory. First time buyers may benefit. And the summary above looks pretty accurate. Thanks for watching!

[@ShaunShahmardian]

Couldn't have happened in a better state!

[@dan10400]

Prop 13 doesn't just protect a long time property holder from being "crushed by increases in property taxes", it shifts the tax burden to newer property buyers who have to take on an increased tax burden. There are no free lunches.

[@gilfixlaw]

Fair point! Prop 13 has resulted in massive differences in taxes from one property to the next. We know that many support Prop 19 precisely *because* it ends Prop 13 protections for inherited properties (outside of the $1M in protection for the primary residence, if children live there). Without Prop 13, many older Californians would not be able to afford to stay in their homes. We see a lot of passion on both sides of the Prop 19 debate, and simply hope to educate about the impact of this new law, and how we can help. Thanks for watching!

[@dan10400]

@@gilfixlaw There is a legitimate need to not financially kick homeowners out of their houses. There is also a question of how many people receive this benefit when they really don't need it. The tax subsidy via prop 13 (or prop 19) should be recognized as a benefit and taxed accordingly under the progressive tax code. This would level the field, protect those whom the law is touted to benefit, while not those for whom it does not need to benefit.

[@theiviaxx]

@@dan10400 hear hear. i can't understand why it makes sense for millennials to subsidize boomer's property taxes. Why is it ok for me to pay full tax, but not them? they bought in the 70s? gtfo with that. i agree there will be some edge cases that do need assistance or shouldn't be priced out of their homes, but the large majority are just being incentivized to sit on their property and never sell. now they cant pass that onto their kids, boo hoo. how about you just pay your fair share, hmmm?

[@amazoidal]

Many Seniors would have to sell their home. Do you want that to happen to You?

[@dan10400]

@@amazoidal You are not reading the thread. I acknowledged that and mentioned a progressive tax code to address this. Lack of cash flow does not necessitate handouts to heirs.

[@Gregarious3]

The question is, are property taxes fair? The state does or does not need the tax income? Rentals should not be protected but, then the renters would have to pay. I am providing 6 units under "market" because my expense is lower and I am not a total dick.

[@gilfixlaw]

This is a very real concern - if Prop 19 causes property taxes for 1000s of California rentals to be fully reassessed when they pass to the next generation, it will indeed be much harder for landlords to charge below market rents, because their costs will be much higher. Thanks for watching!

[@KaiPonte]

Having recently inherited my father-in-law's property in Irvine, which was purchased for $48,000 and sold for $1.4 million, we are very aware of this. It actually makes sense. My mom, meanwhwile, is still paying taxes on the 1982 base value of her property in Seal Beach. She cannot pay for what the current value would be. However, I can, and will pay when she passes away.

[@gilfixlaw]

Very fair points! Many younger Californians see Prop 19 as totally fair - it does not affect property taxes for parents/elder Californians, as long as they live and hold property. It allows them to move within the state with their low property taxes, and the next generation can sell with a "stepped up basis" when inheriting. It allows for $1M in fair market value protections against reassessments if children live in the family home - many Californians see it as fair. That being said, it makes it very hard for middle class families to hold onto any rental(s) or homes in higher-priced areas - property taxes can go up massively (without planning), as we point out in this video. And there are no protections for children with special needs - which we see as a big flaw. We see a lot of passion on both sides of this issue - thanks for watching!

[@rstevens4824]

I have friends that have left California because of Prop 19 and now that they are going for socialized medicine my wife and I who were both born in California and in our late sixties are looking to move out of the state the Democrats have destroyed the dream that we used to have in California

[@gilfixlaw]

We have certainly seen a few of our clients leave California over tax issues. That being said, we are not aware of any other state that has any Prop 13-like protections to keep property taxes low for homes or other properties, and Prop 19 wouldn't apply in most states, because taxes are typically reassessed every year. with minimal protections Aka - property taxes are actually worse (on a % and regular reassessment basis) in most other states - including Texas and other low income tax states (they often make up for low income taxes with higher property taxes), even with Prop 19. But these issues are complex. No state is perfect, that's for sure! We love California, but it certainly has its issues. Thanks for watching!

[@Jack-mm2yp]

it's very easy put all your property in a trust. A trust lives for ever. also to by pass the gain you have to 1031 exchange it. It's not that complicated.

[@gilfixlaw]

Unfortunately, putting a house in a trust, on its own, does not get around Prop 19 property tax increases. That being said, there are solutions available for those who work with experts. Don't try this at home, and don't work with non experts (we've seen some people who came to us too late after making mistakes that cost them $10s of thousands in increased taxes.) Contact us directly if you wish to explore proven options. Thanks for watching!

[@Johnny_Chingas13]

This will be a reason why California's housing market will eventually end up dead! How is anyone gonna be able to afford a home if the taxes go through the roof?!

[@LE-wc1dr]

You will own nothing and be happy!! WEF Carl scwabb

[@lamp7627]

That's the point. All by design.

[@katedaniels9623]

What seduced people into choosing 19?

[@ginatse-louie322]

It was so deceptively masterfully marketed.

[@gilfixlaw]

Thanks for watching! To be fair, Prop 19 does make it easier for older Californians to move within the state, while preserving their low property tax base. We hear arguments on both sides - but most don't understand how the law works - hence our video. We do have solutions to this for families to keep taxes low! What do you think was the most convincing argument (whether you agree with it or not) that got this law passed in 2020?

[@ginatse-louie322]

@gilfixlaw FIX*Prop19 by Repeal The Death Tax will keep portability in place to allow Seniors to move. ACA11 aka Proposition 19 was titled "The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act". How is that for deceptive when at least 3 of those intended to be protected are being forced to sell homes because of Proposition 19's passage. When only 16% of Californians can afford to buy... if the only way for people to own is to inherit... let them! If they can't pay... they can't stay!

[@pirateofpacific]

​@@gilfixlawThis is not entirely true. I wanted to sell my house in Vacaville and wanted to buy house in LA thinking I will be able to carry my low property taxes to LA and can afford property taxes because of this new process soon of carrying over taxes. But I was disappointed because there are lots of restrictions. House has to be similar value and such. Where the hell am I going to get similar house in LA at same price as in LA? If you can't make it happen, I would love to use your services.

[@dort5436]

There should be a truth in advertising about proposition

[@gilfixlaw]

Very fair point! Most voters don't have time to truly research the insane number of initiatives they face in California. We hope to provide continued guidance about issues that relate to estate planning and taxes, so stay tuned and subscribe to our channel to stay on top of this!

[@PravinPatel-bw6om]

Keep the way it

[@gilfixlaw]

Do you mean you think laws should go back to before Prop 19 (where parents could pass multiple properties to their children without property tax reassessments) or that Prop 19 should remain law, limiting low property taxes for inherited properties (but with $1m in exceptions for the home)? We see arguments on both sides from our friends and our clients! We hope our video was educational about what this law means and how it operates, and what you can do about it!

[@bigalon3wheels]

Everything coming out of the no term limit Houses of reps in CA is new taxes or freedom removing laws or rules. Pretty sure the voters must vote on the prop before it becomes a law.

[@gilfixlaw]

Prop 19 was passed by voters, and is now part of the California state constitution. The legislators cannot change this.

[@user-op7st7wd4e]

What to do about it? Leave the state immediately.

[@gilfixlaw]

Actually, Prop 19 doesn't affect anyone's current property taxes - Prop 13 still applies as long as one lives and retains ownership of California property. Most states, including "red" states, do not provide this protection - many face large, annual reassessments in other states (a big surprise for those who think all taxes are lower in places like Texas or Florida - for many, they are not). California remains a tax-advantaged state (from a property tax perspective) for those who simply retain California property, as long as they live. Re: Prop 19 and inherited properties - We have developed tools for families that want to keep low property taxes for future generations. No need to leave California for property tax reasons, as long as you retain ownership of your property, and as long as you plan ahead. Thanks for watching!

[@JMark-zk5pj]

The bottom line is that you cannot actually own property in the US. Even if you pay it off, you have to pay rent to the government.

[@cruz47144]

Did you expect: education, fire depts, police depts, parks, street lighting, trash, and libraries all to be free? Duh!!!

[@JMark-zk5pj]

The govt makes way more money to fund all of those services without tax. Many European countries do it. Duh!!! It is actually sickening to me that people like you actually like taxation and are too dim to even investigate it.@@cruz47144

[@not-fishing4730]

The real question is what happened to Corporations? They were the true benefit of Prop 13. So did Corporations get the majority of the benefit because they don't die?

[@gilfixlaw]

Very interesting question! Prop 19 only impacts parent-child transfers, so it likely has no impact on corporate ownership of property.

[@not-fishing4730]

As we both know this means Corporations, which can last forever, are still getting a huge tax break. I wonder what political donations were made.@@gilfixlaw

[@mrrichards6007]

The most terrifying words anyone in California can here, “ We’re from the government and we’re here to help.” Keep voting for democrats, you haven’t seen anything yet.

[@catherineduong984]

People did vote for 19 without reading and understanding it carefully. They thought it's better than the 13. Sorry we were all made a big mistake and were cheated by whoever created it rules 😢😢😢😢

[@gilfixlaw]

We know many people didn't understand the true impact of Prop 19 when they voted on it. We hope this video helps to clarify! Thanks for watching.

[@dhui777]

CA citizens are not so stupid to vote for Prop 19. I have a feeling that our democracy has been lost.

[@MikeK6046]

It seems that many Politicians today lean/push towards a similar (not exactly the same) recipe that Fidel Castro implemented in Cuba

[@cptcosmo]

Property Taxes are a joke. You don't woe land, you're leasing it. Stop paying the taxes and they seize your land, which is crap. Also, taxing you on unrealized gains (gains on paper only) is robbery.

[@gilfixlaw]

Interesting point. The reality is that most states reassess properties every year (including conservative states like Texas) - California is, in fact, one of the only states in America that doesn't do this, based on Prop 13 protections. Prop 19 does end most of these protections for inherited properties, however - unless families plan (we can help!) Thanks for watching!

[@salvadorsoriano4734]

I look forward to that time when "They will not build and someone else have occupancy; . . . . and the work of their own hands my chosen ones will use to the full. They will not toil for nothing. . . . . "-- Isaiah 66:22-25.

[@cliffcox7643]

Crushed by taxes is right. My parents say they could not survive wo this and let us eat and send kids to school.

[@gilfixlaw]

Absolutely - prop 13 has been key in allowing elder Californians to stay in their homes. Thanks for watching!

[@BlitzKing2000]

Actually...your "extreme" example is very much a reality. I knew folks who bought a home in LA for $40,000 in the 70s, but now it's worth 1.3 million. Their property tax is only 2,000 a year even though it should be 11K a year, and of course they passed it down to the next generation of kids.

[@gilfixlaw]

Yes - in your case above, their kids likely inherited before Prop 19 became law. Now, without planning, the same house could see a spike to property taxes of over $16k/year if the inheriting children didn't move in within a year, or if the family didn't plan ahead. A huge issue for California families. Thanks for watching!

[@user-jv9qz2bu1r]

I see you do not disclose the planning - I had to watch for almost 15 minutes to see that you spent most of the video telling me how much the tax increase would be - the Mt View story of the teacher from the Valley was superfluous ... sigh

[@gilfixlaw]

We're sorry if you didn't find the context useful - we work hard to present information as best we can - but we do hope you learned from the video. Either way, thanks for watching!

[@user-jv9qz2bu1r]

@@gilfixlaw the info was useful but could have been pared down to about 3 minutes. I am a Cal barred attorney living in Washington state - I have a duplex in Berkeley and I had not heard of Prop 19, so yes I learned something new.

[@johnjaco5544]

I'd like to thank the Legislature for sticking the knife in our backs again. California has been going downhill for the last 45 years. Proposition 13 was a good thing.

[@gilfixlaw]

Important to note that Prop 19 was actually passed by voters, not by the legislature. This is important, because it means the legislature cannot undo or change Prop 19. Thanks for watching!

[@burtflak9409]

Another 500,000 people are going leave because of that. You can always visit stay at state parks and camp. Or an affordable hotel. The place is doomed.

[@juanmontoya6622]

🙄🤷‍♂"You'll own nothing, and be happy." Ida Auken; WEF et al 🤣🤣😂🤣

[@mrrichards6007]

Cali. Can’t sustain their retirement obligations. They need your money so the retired public and government state employees can retire, with their over inflated retirements.

[@gilfixlaw]

There is no doubt that California has massive pension liabilities - so it is unlikely we'll see any tax reductions in the future. Thus, we must understand the rules and plan to avoid unnecessary taxes. We can help for property tax planning! Thanks for watching.

[@mattclark1278]

California property owner speaking here: California needed this. Watching 2nd and 3rd generation inheritors pay 1982 property tax rates on homes - and their income properties - while rents and home values have eluded most working Californians - is a disgusting show of entitlement. For those at the back of the room: every other state with property taxes reassess regularly, even if those properties stay with same owner for decades. That's why homes are more-affordable in other states -and why you're going to be very disappointed when you look at property taxation in those states.

[@gilfixlaw]

Hi Matt - we certainly see this point of view. Regardless of one's views about this law, it does (unless families plan ahead with experts or fall under the $1m exemption for inherited residences) "level" the property tax playing field between inherited and newly purchased properties. Voters did pass Prop 19, and this was likely a big reason why many voted for it. That being said, there is still a lot of ignorance about this new law. Regardless of one's views, it is important to understand the law. Thanks for watching!

[@patriciamays8244]

Homes are no longer affordable in most all large cities regardless of what state you're in.

[@freetrailer4poor]

It is a good change.

[@gilfixlaw]

We understand that while many are totally opposed to Prop 19, many support it. The implication: Don't rely on voters to overturn Prop 19 if it affects you - plan ahead. Hope (for a change in law) is not a strategy! Thanks for watching!

[@alberts2208]

Prop 13 is fair for Calif residential landlords because there is rent control.

[@gilfixlaw]

Very fair point! There is a concern that if inherited properties face a reassessment, rent control can make some properties uneconomical. Crucial to plan ahead for this, and we can help. Thanks for watching!

[@johnrobinson5156]

Nothing is Certain but Death ☠ and TAXE$ 👺

[@gilfixlaw]

Very true!

[@sherylpayne5851]

California voters. That says it all.

[@Gigi2you]

Why would ppl vote to stop generational wealth is beyond me. Middle class no more. Either below poverty level or wealthy. Obscene

[@dave35311]

So now I have to pull out the violins for a lady who was given a 3M home?

[@gilfixlaw]

Fair point! No need for violins - the story was just to show that ignorance about this law has upended the goals for some adult children to stay in their family home. And often a child inherits a high value home with a large mortgage - if this is the case, they may end up with very little while still being forced to sell. But we get that it is a huge privilege for those who get to inherit high-value property in California, regardless of property taxes. Thanks for watching!

[@tara8909]

Not everyone who inherits a home is rich and money is not everyone’s driving force. Some just want to be able to keep their home so that they can live in it, not be forced to sell it for a quick buck.

[@dave35311]

@@tara8909still gonna keep the violin in the case

[@kelanders]

California keeps increasing taxes too the point there is nothing left for the owner

[@gilfixlaw]

Tax increases have certainly been the recent "norm" in California! There are ways to preserve your family home without massive tax increases, but it requires planning with experts. As we like to say "Hope (for political change/tax changes) is not a strategy." Especially in California. Thanks for watching!

[@Dwayne-mb2uj]

I hope that prop 13 is reformed ,My childhood home in Malibu (65k in 1974)is worth 10 million (zillow) yet mother pays only 2 k a year in taxes now how fair is that?

[@johntae71]

If she had to pay the 2% on 10 million would she be able to? Assuming it hit $5million 20 years ago would she have been able to pay the 2%? If no to any of those questions, she would have been taxed out of that home, probably you with it.

[@kennethsouthard6042]

Under what he is talking about your mom's great, great grandchildren will pay about the same adjusted rate even if they never live in the property and just rent it. Actually, this rate would also apply to third parties even if the property is sold in 50 years to someone who's not even born yet.

[@gilfixlaw]

We certainly see these arguments- many see Prop 19 as totally fair, and as a way to balance out what they see as property tax inequities between neighbors and families. And to be clear, Prop 19 doesn't actually change Prop 13 protections as long as one is living and holds their property. It only affects inherited or transferred property. One reason Prop 19 passed was because many high net worth families, or out of state investors, had the ability to pass very high value properties (including Malibu beach houses) to their children with minimal or no reassessments of property taxes. Prop 19 dramatically limits these types of protections, for better or worse (unless families work with experts to plan in advance). There were stories of celebrities inheriting beach houses with minimal property taxes - this helped to pass Prop 19. That being said, this new law can affect middle class California families as well, and can devastate special needs planning - a huge area of our practice. Our mission is to educate, inform, and help California families, regardless of their political views. We hope you found this video useful!

[@kennethsouthard6042]

@@gilfixlaw At the the end of the day, I would guess that it is far more of the Malibu type families that will be creating these trusts as they want to keep the status quo. This also gives them the ability to sell the property to someone else who can also keep the low rate.

[@gerib716]

She worked hard to keep it. Be fair