California Desert Association Of REALTORS® Supports Restoration Of Prop. 90 Allowing Homeowners Over 55 To Transfer Their Property Tax Base When Moving To Riverside County
PALM DESERT, CA – July 23, 2013 – (RealEstateRama) — Restoring Prop. 90 to allow homeowners 55 and older to transfer their property’s base tax value to a new home in Riverside County will boost the economy and create jobs, the California Desert Association of REALTORS® said today in urging Riverside County Board of Supervisors to approve the measure.
“At very small cost in property tax foregone, the county gains hundreds of million dollars in economic benefits, potentially thousands of new jobs, no additional costs and thousands of wonderful new, contributing neighbors,” said Wendy Formica, CDAR president.
“CDAR fully supports the restoration of Prop. 90, which was in effect in our county until 1995,” Formica said. “We are very thankful to our County Supervisor John J. Benoit and to Supervisor Kevin Jefferies for backing the restoration of Prop.90 which provides a good sales spark to our real estate market. We are urging all the Board of Supervisors to support this.”
The Board of Supervisors will hold a public hearing July 30 with a vote on Ordinance 920 expected at its Aug. 20 meeting in Riverside, according to Burt McChesney. CDAR’s government affairs director.
McChesney said the Riverside County Assessor estimates that 2,300 sales would be generated annually in Riverside County under Prop. 90. Using a formula of economic impact from a single home sale developed by Harvard University and the National Association of Realtors, authorizing Prop. 90 will mean annual gains of about $220 million in economic benefits and potentially 1,150 new jobs countywide.
To qualify under Prop. 90, homeowners 55 years and older must buy an existing or new home at equal value or below the value of their current home. The provisions of Prop. 90 may result in substantial tax savings since it allows the adjusted base year value of the original sold property to be transferred to the newly purchased or constructed home if eligibility requirements are met.
McChesney said eight other counties have Prop 90. in place now, most notably Los Angeles, San Diego and Orange Counties giving them a decided edge in competition to attract new permanent residents.
“We need to stay competitive to bring new homeowners to the Coachella Valley,” said Ann Ritchie, CDAR executive vice president. “All those other counties offering Prop. 90 benefits are the counties where many of our potential buyers come from. These are generally people over 55 with expendable incomes so they fix up their homes, go to restaurants, play golf and the like.”
McChesney said Wendy Formica and representatives from other major Riverside County real estate boards will give testimony to the Board of Supervisors July 30.
To show your support Prop. 90 email or, call or write your Riverside County Supervisor or sign an online petition at CDAR’s website site, www.CalDesertRealtors.org A sample letter is also available for downloading. Petitions can also be signed at CDAR’s office, 44475 Monterey Ave, Palm Desert.
The California Desert Association of REALTORS®, The Voice for Real Estate® in the Coachella Valley, represents more than 3,000 real estate professionals from Palm Springs to Coachella. REALTORS® hold themselves to a higher standard yet only about a quarter of California licensed real estate agents are REALTORS®. You can be sure you’re working with a REALTOR® by visiting us online at www.CalDesertRealtors.org. For more information, please call (760) 346-5637 or visit online at www.CalDesertRealtors.org
CONTACT:
Burt McChesney, Governmental Affairs Director
(760) 702-0651
(Media) John Hussar
PRNewsWorks (760) 567-8073
