This morning, Senator Kelly Seyarto (R-Murrieta) hosted a press conference on SCA 4, a constitutional amendment that would that would restore taxpayers’ property rights allowing Californians to keep their childhood homes and family businesses when their parents or grandparents pass away.
In 2020, Proposition 19 capped the value of family homes that could be inherited with their Prop 13 tax base to 1 million dollars and restricted the ability for parents to transfer property to their children by adding a requirement that they live in the home for the remainder of their life.
Prior to Prop 19’s passage, both parents and grandparents were able to pass their homes and businesses to their children and grandchildren without such implications, giving families a chance at economic mobility through inheritance.
“Prop 19 changed the way intergenerational transfers of property were handled, all to the detriment of Californians who had worked so hard for many years to solidify a future for themselves and their families,” said Senator Seyarto. “Simply put, Prop 19 resurrected the death tax. We should be making it easier for Californians to inherit property without asking them to absorb the burden of additional taxes. Upward economic mobility cannot be achieved unless we let people own what they create through decades of hard work.”
Senator Seyarto recognized several speakers in support of the measure including Jon Coupal, President of the Howard Jarvis Taxpayers Association. “SCA 4 would reinstate Propositions 58 and 193, giving Californians back those protections of being able to inherit property from parents and grandparents,” said Coupal. “Prop 58 was passed by unanimous vote in both houses. They put it on the ballot, and the voters supported it by 76%. It’s clear that voters in this state want to restore that protection.”
Lynda Chac, a realtor from Elk Grove, stated that her clients work hard to be able to purchase their forever home that they want to leave to their children when they pass.
Senator Roger Niello (R-Fair Oaks), co-author of the measure, said “I don’t think we can emphasize enough the terribly and intentionally biased title and summary of [Prop 19]. Titled The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, they should have added to that ‘and the largest tax increase the state has passed,’ but that was left out. We are going to correct that error with SCA 4, of which I am a proud co-author.”
Veronica Nelson, First Vice President and Legislative Chair of the Sacramento Realtist Association, and Dr. Rosie Milligan, an author and estate planner who holds a PhD in Business Management, also voiced their support for the measure. “I support SCA 4 because the intent is to repeal the devastating impact of Prop 19 and protect California families from being taxed out of their homes,” said Dr. Milligan.
“This legislation has one purpose, to RESTORE protections for taxpayers and to keep the intrusive reach of the government away from their family inheritance,” said Senator Seyarto. “I urge everyone to join with us, contact your Representatives and tell them to vote yes on SCA 4 so we can bring this measure back to the people and restore taxpayer protections.”
SCA 4 will be up for a special hearing in the Senate Committee for Governance and Finance on May 10. Visit sgf.senate.ca.gov for instructions on participation.