On May 2, Sen. Kelly Seyarto (R-Murrieta) organized a press conference regarding SCA 4, a proposed constitutional amendment that aims to reinstate the property rights of taxpayers. If passed, it would enable Californians to retain their family businesses and childhood homes upon the death of their parents or grandparents.
Implemented in 2020, Proposition 19 (Prop 19) imposed a limit of $1 million on the worth of inherited family homes that could retain their Prop 13 tax base, according to a press release. Additionally, it mandated a condition that the children of the property owners must reside in the home for the rest of their lives, thereby restricting the parents' ability to transfer the property to their offspring.
Before the approval of Prop 19, parents and grandparents could transfer their homes and businesses to their descendants without any such restrictions, providing families with an opportunity to achieve financial advancement 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 Seyarto, according to the press release. “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.”
There were many speakers at the conference who supported 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, according to the press release. “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.”
Elk Grove realtor Lynda Chac stated that buyers work hard to be able to purchase their forever home, and that they would like to be able to leave it to their children one day, according to the press release.
"I don’t think we can emphasize enough the terribly and intentionally biased title and summary of [Prop 19]," said Sen. Roger Niello (R-Fair Oaks), co-author of the measure. "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 Rosie Milligan, an author and estate planner, who holds a doctorate in business management, also supported the measure at the conference. “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 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 Seyarto in the press release. “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.”
Seyarto was elected to serve the 32nd State Senate District in 2022. He represents cities and communities including Cathedral City, Desert Hot Springs and Palm Springs.