Politicians have proposed taxing general unrealized capital gains, not just property value. California wants to tax everything you own - including retirement accounts. They call it a “billionaires tax,” but since the billionaires have left/are leaving, soon that will be the “millionaires tax,” and then just everyone’s tax. With home values in California, if you own a home, it is very easy to be classified as a millionaire. My parents bought a very basic tract home in Los Angeles County in 1957. It cost $18,000 and they were thrilled to sell it a few years later for $24,000. Currently on Zillow it is valued at more than $1 million.