Introduced
by
To establish a property tax "pop-up holiday," in which the assessed value "pop-up" would be suspended for sales of principle residences that take place between April 30, 2006 and Jan. 1, 2008. The “pop-up” is a provision of the 1994 Proposal A property tax assessment cap in which the state equalized value (market value) of newly-sold property becomes the basis for its property tax assessment, rather than the capped “taxable value” of the previous owner, which is lower. House Bill 6155 would increase the .75 percent real estate transfer tax to .85 percent during that period on sales of principle residence property, and distribute part of the extra revenue to local governments to compensate for the lower property tax revenues that this bill would cause. The net effect of the two bills would be a higher transfer tax payment at the time of a sale, but permanently lower property taxes for those who buy a principle residence during the period, with larger savings on houses that the previous owner had lived in for a long time. In most cases the result would be a net savings for the taxpayer over time.
Referred to the Committee on Tax Policy
