Re: 'Real Estate Round-Up: P is for Prop 19' [Village News, Editorial, 6/24/21]

Last week there was a letter in the opinion section promoting the benefits of Proposition 19. Unfortunately, there is a very dark side to this proposition that was completely ignored.

Prop 19 was one of the most profoundly misrepresented propositions in the history of California elections and a significant erosion to the protections afforded all Californians by Proposition 13. Seriously, the title of Prop 19 was “The Home

Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.”

I am surprised they couldn’t figure out a way to have “kittens” and “puppies” in the title. Could there be a more obfuscated title when really the proposition was all about benefiting the real estate industry? Aw, that’s not fair you say. Well, follow the money.

Who were the major funding sources behind Prop 19 you ask? The real estate industry. Supporters of Prop 19 raised $47.0 million, with $40.4 million from the California Association of Realtors and $4.9 million from the National

Association of Realtors, for a combined total of $45.3 million (96.4% of all campaign contributions) coming from real estate interests. Follow the money folks. Who benefits most from Prop 19? The real estate industry.

Why, you ask? Because it will result in more properties being sold. Yes, the proposition afforded two more opportunities for an old geezer like me to sell my home and keep my existing property tax basis. The article completely ignored the

other reason why more properties will be sold and why the industry spent $45 million promoting Prop 19.

One can no longer pass to their children real property owned and have one’s children keep the existing tax basis unless one of the children will choose to make the property their primary residence. This is a huge deal and a big loss to California property owners/taxpayers.

If a parent has worked their entire life and invested in rental properties or business properties or vacation properties, under Prop 19 when the parent dies and the property transfers to the children, the property is reassessed to full market value and taxes go through the roof, likely forcing the sale because the family can no longer afford the property taxes.

Again, a boon for the real estate industry at the expense of hard-working individuals. Parents that labored their entire lives to create what they thought was to be a legacy for their children upon their passing only to have the children forced

to sell because of astronomically higher property taxes. Sad.

The $45 million funding by the real estate industry and the slick campaign ads were just enough to tip the election in favor of Prop 19….51% to 49%, a clever work-a-round to the desire of almost all California voters to require a 2/3 approval for any new taxes.

Had the electorate been better informed about all the impacts of Prop 19, it likely would have been defeated. And folks wonder why businesses and families are moving out of California.

Steven Smith