CA Homeowners Ages 60+ Exempt From Paying Property Taxes Under New Proposal

California voters may get an opportunity this election year to decide whether homeowners aged 60 and older should be exempt from paying property taxes.

California Secretary of State Shirley N. Weber, Ph.D., announced this month that a proposed ballot initiative — titled "Exempts Certain Homeowners Aged 60 Or Older From Property Taxes" — is winding its way through the state's legal process.

The proposal's proponent — Silicon Valley-based Rishi Kumar — was cleared on Feb. 5 to begin collecting petition signatures, Weber confirmed.

According to the initiative's legal summary that was prepared by the California Attorney General's office, the proposal "Reduces local property tax revenues by exempting a principal residence from property taxes if the homeowner, or the homeowner’s spouse: (1) is 60 years of age or older; and (2) has occupied the home as a principal residence for five consecutive years or has lived in California for at least 10 years."

The exemption, however, ends if the property no longer qualifies as a principal residence, according to the summary. Furthermore, "After five years, homeowners must certify their continued eligibility to maintain exemption," the language states.

The exemption does not apply to voter-approved special taxes, assessments, or bonds.

Being able to forgo annual property tax bills could be a massive win for some cash-strapped seniors, but it would come at a cost. According to the state's Legislative Analyst's Office and the Director of Finance, the proposal would reduce revenue for local governments and schools by $12 billion to $20 billion per year.

"These losses would grow over time," according to the state review.

Kumar counters that Proposition 13, approved by California voters in 1978, "was a godsend" for homeowners and that his proposal would deliver the same landmark outcome.

More than a dozen states offer significant property tax exemptions for seniors, including some relief in California. Propositions 60 and 90 are property tax savings programs for homeowners age 55 and older who sold their home and bought another of equal or lesser value before April 1, 2021. The programs allow the taxable value of an original home to be transferred to a newly purchased home, preventing an increase in property tax due.

Kumar's proposal still has a way to go. To qualify for the November ballot, 874,641 registered California voters must sign the currently circulating petitions, and the signatures must be submitted to county election offices by Aug. 4.

Californians might see signature gatherers outside their local grocery stores and other public spaces. Rishi Kumar has also established a website to gather signatures.

According to Kumar's bio, he is a high-tech executive who served on the Saratoga City Council, the California Governor’s University of California Regents Selection Committee, and California’s K-12 public school computer science implementation panel that was responsible for the state's Computer Science K-12 curriculum. Last year, he ran unsuccessfully in the special general runoff election for Santa Clara County Assessor.