By Roland Love, Vice President, Business Alliances & Field Operations
There is an important Constitutional Amendment vote on Saturday, May 7th, the day before Mother’s Day (another important reminder – do not forget your Mother on Mother’s Day!). There are two proposed amendments that affect tax exemptions. The State legislature already enacted the supporting legislation via a bipartisan vote. As is often the norm, the wording on the ballot is challenging to comprehend, so here is a quick tutorial before you get to the voting booth or your client or neighbor asks you as their Realtor to explain.
Proposition 1 extends certain provisions adopted in 2019 to reduce school property taxes, in general, to also assist homeowners that are disabled or 65 and over that have their property taxes capped (frozen). A “Yes” vote also allows a tax reduction for these qualifying persons, just as for everyone else, and will reestablish a new property tax cap. In other words, this proposition would lower property taxes for homeowners who are elderly or disabled, allowing them to receive the same benefits other homeowners received under the 2019 law. This heads off a scenario down the road where older or disabled taxpayers could end up owing more in school district taxes than the median homeowner.
Proposition 2 is much simpler. The current homestead exemption for school taxation is a reduction of $25,000 in value. A “Yes” vote increases this deduction to $40,000. This saves each taxpayer homeowner, on average, about $175 per year.
Keep in mind that actual total taxes may still go higher because of property value increases.