Worried about fires? California ballot initiative could help you sell your home in the hills

Sep. 10--As the state battles another disastrous wildfire season, survivors are urging Californians to vote yes on a November ballot initiative that they say will help seniors and people with disabilities move away from fire-prone communities while raising money for disaster prevention.

Supporters of Proposition 19 plan to launch a statewide ad campaign this week featuring wildfire survivors, seniors, and Californians with disabilities.

The initiative, backed largely by the California Association of Realtors, would allow seniors, those with disabilities and victims of natural disasters to retain property tax benefits tied to their current homes if they move to another more expensive residence in the state.

It also could make it easier for those who lose their homes in wildfires to relocate to less fire-prone areas, rather than rebuild on the same lot, supporters say.

Camp Fire survivor Ellie Rosebush appears in one of the ads airing this week, where she says, "If Proposition 19 had been in place in California at the time of the Camp Fire, more families would be able to relocate their families to wherever is best for them in our state without a significantly higher property tax -- right when families can least afford it."

Currently, homeowners pay property taxes based on the price they paid when they purchased a house. That can create a disincentive for longtime property owners to sell their homes because purchasing a new residence could lead to a significant property tax increase even when downsizing to a smaller residence.

Certain homeowners, including those over 55, those who are victims of natural disasters, and those who have severe disabilities, are able to transfer their tax assessments to homes of the same or lesser market value. The proposition would change that, allowing those homeowners to transfer their tax assessments anywhere in the state, including to homes of greater value, with an upward adjustment.

It would also end a tax exemption that some say is exploited by celebrities and out-of state residents.

California law currently allows property owners to avoid paying the market tax rate on homes they inherit from parents or grandparents. But under Proposition 19, in order to inherit the same tax assessment rate from their relatives, the owners would have to make the property their primary residence. If they use the inherited property as a rental house or second home, they would have to pay market-value taxes.

Changing the rules around the inherited property tax credit will generate millions of dollars, supporters say, which will be earmarked for wildfire prevention and response. According to proponents, the proposition will generate $100 million by the end of its first year and $6.1 billion after 12 years.

A similar proposition failed in 2018. It did not include new tax revenue and did not address the inherited property tax exemption. It faced opposition from labor and firefighting organizations such as SEIU, the California Teachers Association and the California Professional Firefighters.

Now, with the addition of a wildfire response fund, the initiative has support from the state firefighter union.

"Proposition 19 will improve tax fairness for all Californians and the fight against catastrophic wildfires," Brian K. Rice, president of California Professional Firefighters, said in a statement. "Right now, California is experiencing the worst wildfire year on record and this ballot measure will secure critical and reliable funds for fire districts that are on the front lines of these intensifying wildfires."

The Howard Jarvis Taxpayers Association is opposing the initiative, largely because it would restrict the tax exemption for properties passed down parents or grandparents to their descendants.

At a virtual press conference on Wednesday, state and local officials, as well as wildfire survivors and disability rights activists, voiced their support for the proposition, saying it will allow vulnerable populations to relocate to safer ares without the penalty of a new tax rate.

"This kind of funding, hundreds of millions of dollars, could save countless lives and limit the kind of devastation many of us are still trying to recover from," said Scott Lotter, former mayor of Paradise, which is still dealing with the devastating impacts of the 2018 Camp Fire. "These families were in critical need of financial help, not further distress. Proposition 19, if it had been enacted, would have helped so many of my fellow survivors."

The campaign for the initiative is picking up as California hits a record of acres burned. Gov. Gavin Newsom on Tuesday said the state has seen 2.3 million acres burned this year, and the worst part of wildfire season is just beginning. By Wednesday, gusty winds had stoked an unprecedented number of fires, forcing many to evacuate.

Camp Fire survivor Rosebush on Wednesday voiced her support for the proposition, saying its evident that the need is urgent. Rosebush and her family have recently evacuated from Oroville back to Paradise to avoid the Bear Fire, which is looming down on the area.

"When you go through a fire like this, there's not many wins," Rosebush said. "The rebuilding process is horrible. When you can get to one thing that sounds like you're not going to be penalized for losing your home, it's a big deal."

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