Proposition 5 would make a small modification to Proposition 13, a ballot measure that decreased property taxes statewide in 1978 at 1976 values. If Proposition 5 is passed, it would allow homeowners who are over the age of 55 or are severely disabled to continue paying property taxes based on the assessed value of their current homes when they sell and then purchase a new residence. The same goes for residents in areas affected by natural disasters.
That could translate into big savings for older homebuyers, given that under Proposition 13, Californians who have owned property for longer periods of time often pay far lower taxes than their neighbors.
Under current law, when people who have owned their homes for decades decide to sell and re-buy somewhere else, it often means taking on a much higher property tax burden.
Residents to whom the ballot measure applies can already take property tax savings with them if they buy a home of equal or lesser value in the same county. But they can only do this once. Proposition 5 would eliminate the one-time requirement and allow home buyers to shop around in counties across California.
Proposition 5 was drafted and endorsed by the California Association of Realtors. The real estate organization has spent more than $4 million qualifying the initiative for the ballot and promoting it to voters.
Proposition 5 is opposed by the California Democratic Party, the California Teachers Association, the Southern California Association of Nonprofit Housing, and other housing and labor advocacy groups.