On May 16th, Assemblyman Matthew Harper (R-Huntington Beach) and Assemblyman Phillip Chen (R- Diamond Bar) announced the passage of their “American Dream” bill which increases the existing homeowners’ exemption on their property tax from $7,000 to $25,000, giving relief to homeowners, renters and those aspiring to own a home.

“Homeowners and renters in California are paying some of the highest overall taxes in the nation,” Assemblyman Harper said. “It’s about time that the size of the homeowner’s property tax exemption kept up with the increases in cost of living. Also, I want to thank Orange County Assessor Claude Parrish for working with me to bring this bill forward.”

“High property taxes are making it impossible for too many Californians, who spent their lifetime living and working here, to stay”, said Assemblyman Phillip Chen. This bill would provide immediate relief for millions of homeowners with an emphasis on helping those whose taxes far exceed their ability to pay.”

The homeowner’s exemption hasn’t been increased in 40 years. Meanwhile, the cost of a median priced house has increased from $21,000 to over $450,000, and represents a home that only 30 percent of Californians can afford to purchase. California has a housing crisis and providing tax relief for homeowners and renters will unquestionably lead to enhanced economic stability,” said David Wolfe, Legislative Director with the Howard Jarvis Taxpayers Association.

The “American Dream” bill will also adjust the renter’s credit by a corresponding amount.