Dear Residents of Alameda County,
What a year this has been. As it comes to a close, I would like to share my gratitude with you. With all the challenges 2020 brought us, I am proud of the work the Assessor's Office staff has done and thankful to the public for your partnership.
There are some upcoming issues that may affect your property taxes that you should all be aware of.
Important Changes to Parent/Child Transfers of Property:
The election results from November 3, 2020, brought many changes to Alameda County. At the top of the list is Proposition 19 (Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act) which does two things: (1) expands the portability of a property owner's tax base and (2) requires re-assessment of certain parent to child transfers of property.
Prop. 19 implementation for the new parent/child transfer rules starts on February 16, 2021, less than two months from now. Prop. 19 restricts the inheritance of a property's assessed value to the primary residence with a maximum transfer value of $1 million, depending on the circumstances. Prior to a transfer, the home must be the parent's principal residence and it must become the primary residence of the child(ren) within one year after the transfer to qualify.
Prop. 19 also expands benefits allowed for seniors, the disabled and victims of disasters to transfer their property's assessed value to another home anywhere in California. This aspect of Prop. 19 is effective April 1, 2021.
As the sale of property frequently triggers unintended consequences on federal and state taxes, such as capital gains, property owners are encouraged to seek professional advice before taking any action.
The Alameda County Assessor's Office has already begun to plan for the implementation of Prop. 19 and enhance community education on the topic. Although we know some of the major impacts of Prop 19, there are significant issues in the language of the measure that are still unknown and we await further guidance from the California State Board of Equalization and/or the Legislature before implementation. I recently held a webinar on Tuesday, December 22, 2020 to help share what information we have and don't have in order to educate residents of the upcoming changes. You can find the video and slides
HERE.
I've also been appointed to the California Assessors' Association Legislative Committee. In that capacity, I look forward to continuing to work on the Prop. 19 implementation and clarification on behalf of the residents of Alameda County.
Reducing Taxes for Small Businesses:
I would also like to inform you that at the December 8, 2020 Alameda County Board of Supervisors meeting, the Board unanimously adopted a resolution introduced by the Assessor's Office and the Treasurer-Tax Collector's Office. Treasurer Levy and I want to eliminate property taxes for very small business accounts such as those paid by vendors at our County Fair, Farmer's Markets, and other very small businesses. We included in the resolution an exemption of property taxes for all assessments that are less than $10,000.
This is even more important during COVID-19, when so many small businesses are hurting and in need of support. Our Office is thankful for the partnership of the Hayward Chamber of Commerce, Pleasanton Chamber of Commerce, Livermore Valley Chamber of Commerce, and the Dublin Chamber of Commerce, as well as many small businesses who understand firsthand COVID's impact.
Free Legal Clinic to Help Answer Questions:
When I was elected to be your County Assessor just over two years ago, one of my top goals was to develop a community engagement program. I wanted to educate our property/business owners and constituents about the services and programs offered by the Assessor's Office. In that spirit, I worked with the Alameda County Law Library, Alameda County Bar Association, Legal Access Alameda, and the Alameda County Library to establish the Property Transfer Clinic. This program was developed in order to help residents of our County who do not have access to an attorney to receive legal advice. Often property/business owners ask legal questions of the Assessor's staff, who cannot provide legal advice. This is an ongoing monthly clinic, on the 3rd Thursday and Friday of each month. You can find more information below. I look forward to bringing more community engagement programs to you in 2021.
I hope you and your family have a safe and happy close to 2020.
As always, we remain committed to serving the residents of Alameda County.
Sincerely,
Phong La
Alameda County Assessor
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