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Governor Schwarzenegger Signs Property Tax Relief for Domestic Partners

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October 16, 2007

(Sacramento, October 15, 2007) — Governor Arnold Schwarzenegger on Friday signed legislation that will provide relief to domestic partners who paid unexpected, discriminatory property taxes prior to Jan. 1, 2006.


The Fair and Equal Taxation for Surviving Partners Act, authored by Sen. Christine Kehoe, D-San Diego, drafted by Lambda Legal, and sponsored by Equality California, ends tax increases for domestic partners who separated or lost a partner before a 2006 law went into effect protecting them against unfair property reassessments.


"We're pleased that the Governor has joined the Legislature in affirming the equality of the state's same-sex couples, but in essence this is still just a partial solution," said Brian Chase, Senior Staff Attorney with Lambda Legal's Western Regional Office. "The Governor missed an opportunity to fix a host of other problems facing California's same-sex couples when he refused to sign a bill that would have granted them equal marriage rights - legislation already approved twice by the legislature."


"Unlike married couples, some domestic partners have struggled to keep their homes due to a property tax increase that was triggered by the death of a partner or the end of a relationship," said EQCA Executive Director Geoff Kors. "With the enactment of this legislation, domestic partners will no longer be forced to carry this extra tax burden that other loving, committed couples do not have to bear. We applaud the governor for signing this bill into law, while reminding him that the inequalities created by domestic partnerships need to be remedied by legislation like this until we grant gay and lesbian couples the ability to marry."


California law shields property transfers between married spouses, parents and children, and grandparents and grandchildren from reassessment at fair market value. Although the legislature extended those same protections to registered domestic partners in 2006, couples that transferred property prior to that date did not receive the same benefit. Kehoe's Fair and Equal Taxation for Surviving Partners Act applies this exemption to registered domestic partners who were unfairly taxed before 2006. The bill ensures that the partner's property tax bill is adjusted in the future to reflect the tax rate that was paid prior to the unfair assessment.


"This legislation ensures that all loving and committed couples are treated fairly and receive equal tax protections," said Kehoe. "Registered domestic partners who were vulnerable to costly property tax reassessments deserve relief."


San Diego resident David Pierce saw a massive increase in his property tax bill on the death of his partner, also named David, in 2004. "Though David and I could not get legally married in California, we always believed that our registered domestic partnership would protect us," Pierce said. "Sadly, I learned that no such protection existed. While I was fortunate enough to be able to keep my home despite the increased taxes, many have not been so lucky. I applaud Senator Kehoe, the California Legislature and Gov. Schwarzenegger for passing this badly needed bill."


The Fair and Equal Taxation for Surviving Partners Act passed the Senate with a 24-13 vote on June 4, and cleared the Assembly on September 4th with a 45-29 vote.


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Lambda Legal is a national organization committed to achieving full recognition of the civil rights of lesbians, gay men, bisexuals, transgender people and those with HIV through impact litigation, education and public policy work.


Equality California is a nonprofit, nonpartisan, grassroots-based, statewide advocacy organization whose mission is to achieve equality and civil rights of all lesbian, gay, bisexual and transgender (LGBT) Californians. Please visit our website at eqca.org.


Contact: Jason Howe  213-382-7600 ext. 247; Email: jhowe@lambdalegal.org

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