While Prop 19 brought with it an unexpected wave of near-immediate consequences for taxpayers, Senate Bill 668 (SB 668) offers temporary shelter from the tumult. Introduced by Senator Bates on February 19, 2021, SB 668 would offer a two-year, intermediary reprieve from Prop 19’s implementation. According to the Legislature’s website, linked below, SB 668 is an “act to amend, repeal, and add Section 63.1 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.”
Heavily commercialized, Prop 19 neglected to mention the adverse consequences citizens would incur upon its passing. Prop 19 passed on November 3, 2020 and became operative on February 16, 2021. It alters the definition of “change of ownership” to include parent-child transfers of a home or other property, which were previously exempt. SB 668 would give those struggling under the weight of the tax consequences created by Prop 19 a multi-year reprieve to plan accordingly.
SB 668 was introduced on February 19, 2021 and read for the first time on February 22, 2021. No bill may be acted upon until 30 days after the date of its introduction. Currently, SB 668 is in the committee process. If passed by the reviewing committees, then it will be read for a second time on the Senate floor before this process repeats itself in the House. If both houses approve SB 668, then it will be sent to Governor Newsom who can choose to sign the bill into law, allow it to become law without his signature, or veto it.
To track SB 668’s progress and learn more, click here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB668
DISCLAIMER: The content contained herein is for general informational purposes only. These materials do not constitute legal or other professional advice. We do not accept any responsibility for any loss that may arise from reliance on this information. No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.