If you are over 55 or disabled you have a personal interest in Prop 5. If you plan to turn 55 one day you should also pay attention! (Slight joke here.)
Refer to my blog post on 12/31/2017 to get background on Props 60 and 90 which provide the general framework of how Prop 5 would work but basically the California Association of Realtors has put together an initiative which would help those over 55, or disabled, to transfer amended current low tax rates to the purchase of new properties allowing more homes to turn over for purchase by individuals and families struggling to buy in the tight California market. Part of this has already been allowed but it was a choice each county could make and those, like San Francisco which have very high property values, didn't allow it. Prop 5 would make it state-wide law.
This proposition assumes older owners, many of whom are on a fixed income, have been in their properties for many years and have seen exponential appreciation while Prop 13 has limited the increase in their annual property taxes at a rate of no more than 2 percent per year meaning they pay much lower taxes than their neighbor who just bought next door.
Ballotpedia does an outstanding job of showing how the proposition would work.
I am voting for it. Educate yourself. If you are worried about selling your house when you are in retirement and buying a new house with high property taxes you should vote for it too.
