The Howard Jarvis Taxpayers Association has sent out a call-to-action email alert regarding Senate Bill 2 (SB 2) by State Senator Toni Atkins (D-San Diego). SB 2 would add a new tax on every real estate instrument, paper, or notice requirement negatively impacting refinances, construction loans, loan modifications, lien holders, lot line adjustments and death of a spouse for homeowners. This additional fee is per document recorded, which may consist of several documents for one transaction, up to a cap of $225. For more background on SB 2, see this recent column by Jon Coupal.
SB 2 is currently awaiting a vote in the Assembly either today or tomorrow.
[NOTE: Fullerton's State Senator Josh Newman already voted Yes on SB 2.]
HJTA explains just how costly Senate Bill 2 will make recording these documents:
Transfer upon death deed: This document is commonly used to ensure that individuals avoid a costly probate situation following the death of a loved one. Under SB 2, filing this will cost an additional $150.
Estate planning documents: Placing deeds into a trust is a multiple document process and will now cost at least an additional $150.
Creating a reverse mortgage: Another multiple document process, this will cost an additional $225.
Death of a spouse: Beyond the emotional pain of losing a loved one, it will now cost an additional $225 to record this.
Homesteads: Creating a homestead to protect some of your equity from creditors will cost an additional $75.
Additionally, recorded transactions common to homeowners including modifying a loan to avoid foreclosure, refinancing a home loan, and taking out a construction loan all will cost an additional $225. Ultimately there are 450 transactions that could be subject to this tax.
Call Sharon Quirk-Silva’s Sacramento office now at 916-319-2065 and urge her to vote No on SB 2.