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1) Re: 2009 House Bill 5035 (Exempt residence sale to relative from tax “pop up” ) [by Kayak Girl on June 19, 2009]I believe the word “sale” in the summary is incorrect. This is about inheritance. The proposed language is: “a transfer of real property if the transferee is related to the transferor by blood or affinity to the third degree and the use of the real property does not change following the transfer.”
For example, since the vacation property that my mother owns (and I have been using for the past 60 years) has tripled in value since Proposal A was approved in March of 1994, when she dies and her children inherit the property (no sale is involved) the property taxes will triple. The land has been in our family since 1925. I feel uncapping (pop-up tax) should only happen upon the true sale of the property. If the sale is to a relative, then the pop-up tax should apply just as if the sale were to a non-relative.
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I, too, wonder what's the difference between a sale to a "relative" and any other sale? It would also seem that right now, given the housing market "crisis," the sales price would be at a comparatively low amount, so that the "pop-up" value on any residence would, if anything, be artificially low.
So why not also exempt from the tax "pop-up" all sales by the elderly, the disabled, the unemployed--or why not exempt everyone?
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Why just family members? The pop-up is a phony figure that in no way reflects the true value of the home. The selling price determined by the buyer and seller is the only indicator of value.
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