Marin County allocates $1M to cowl new Prop. 19 duties

The Board of Supervisors has allotted a further $1 million to the Marin County Assessor-Recorder-County Clerk’s Workplace to cowl an elevated workload attributable to passage of Proposition 19 in November.

Shelly Scott, the pinnacle of the workplace, stated the cash will cowl two years of prices to rent three, full-time workers.

“These positions will assist us to satisfy our state-mandated reporting necessities for Prop-19,” Scott wrote in an electronic mail.

Nonetheless, Scott doesn’t anticipate the added prices to finish there.

“The duties to manage Prop-19 might be ongoing,” she wrote. “In two years we may have a greater understanding of the elevated workload. At the moment, we’ll evaluation the information and make a dedication on the added positions.”

The initiative, which narrowly handed with 51% of the vote, elevated the portability of Prop. 13 property tax protections for householders who’re 55 or older. The measure permits as much as three strikes in a lifetime and locations no restrictions on the place the brand new property is positioned.

Prop. 19 additionally altered the taxation of family-property transfers. As an alternative of being excluded from reassessment, youngsters who inherit a house or different property will obtain a brand new tax invoice primarily based on a present market-rate evaluation, until they make the house their main residence.

Beforehand, beneath Prop. 13, the will increase in assessed worth had been capped at a most of two% per yr in such circumstances.

Prop. 19 resulted in a wave of Marin property transfers. The Marin assessor’s workplace processed 660 parent-to-child transfers between Nov. 4 — instantly after voters handed Proposition 19 — by Feb. 16, the final day property house owners might make the most of former parent-to-child guidelines. Throughout the identical interval in 2019 and 2020, the workplace processed simply 54 parent-to-child transfers.

That, nevertheless, is only the start of the county assessor’s new duties beneath Prop. 19. The legislation is predicted to generate a big inflow of functions from individuals age 55 and older searching for to switch the assessed worth of their present residence to a substitute residence.

Greg Ingrassia, a Marin appraiser who has been fielding inquiries from the general public concerning the brand new legislation, stated the assessor’s workplace has already obtained roughly 50 such functions.

“We’ve got been getting loads of queries from individuals from different counties in California desirous to relocate to Marin,” Ingrassia stated. “We anticipate that the claims will are available steadily down the highway.”

“Beforehand beneath Proposition 60, if somebody 55 or older needed to switch their base yr worth they had been restricted to purchasing a substitute main residence of equal or lesser worth solely,” Ingrassia stated. “Now they’re allowed to purchase a property of better worth and nonetheless qualify.”

Nonetheless, if the market worth of the substitute residence is greater than the market worth of the unique residence, then the surplus might be added to the substitute residence’s taxable worth.

For instance, if the taxable worth of the unique house is $300,000, its market worth is $600,000 and the market worth of the substitute house is $700,000, the substitute residence’s taxable worth can be elevated to $400,000.

The same calculation is made when properties are transferred from a dad or mum to baby, if the kid resides within the residence. On this case, nevertheless, market worth is tougher to find out as a result of no property is being purchased or offered.

“Due to that we’re required to have our appraisers do honest market worth value determinations as of the date of switch,” Ingrassia stated. “That’s going to create much more work on our finish.”

A report on Prop. 19 by the Legislative Analyst’s Workplace previous to the November election predicted that the proposition would require counties to spend tens of thousands and thousands of {dollars} per yr statewide to rent new workers and make laptop upgrades to hold out the measure.

The workplace, nevertheless, stated that general the brand new legislation would end in tens of thousands and thousands of {dollars} in new property tax income for native governments within the first few years and some hundred million {dollars} per yr over time. A majority of this new income is earmarked for hearth safety.

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