By a small margin, Californian’s voted earlier this month to approve Proposition 19, a motion that allows older homeowners to receive property tax breaks. The passage of the proposal could lead to a surge of seniors wanting to sell their homes now that they are don’t have to face a large tax bill on a new home purchase.
On the other hand, Proposition 19 also eliminated a provision that allows those inheriting a parent or grandparent’s property to also inherit the tax rate. Instead, heirs will now pay market value in taxes. While this will generate more tax revenue for the state, it will likely have a negative impact on blue collar workers who are often the recipients of such inheritance.
Since 2010, approximately 650,000 Californians have received a tax break that allows them to maintain their relatives’ low property taxes when they inherit a home, according to a report from HousingWire.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.
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