Tuesday, October 16, 2018

UPDATE: Proposition 13/Split Roll Property Tax Qualifies for the 2020 Statewide Ballot

UPDATE - October 16, 2018

Yesterday, it was announced that the initiative to dismantle Proposition 13 by creating a split roll has qualified and is eligible for the November 2020 ballot.

Under the proposal, all business properties will be reassessed to 2020 values and will be reassessed every three years thereafter. Commercial property will lose any certainty and one can only imagine the impact and cost to long-time property owners. The proponents of this effort believe it’s a $12 billion tax grab from the commercial real estate industry.

The California Legislative Analyst’s Office has warned that the switch would introduce far more volatility into the state's revenue stream.

BOMA California and the California Business Properties Association will continue to work closely with allied business and taxpayer groups on the statewide strategy to defeat this measure. Our industry has been preparing for this moment for some time. 

Click here to read the Proposition.

Click here to read a story about the initiative from the Los Angeles Times.

Original Post - October 10, 2018

In August, proponents advocating for amending Proposition 13 and creating a split-roll property tax by ending the protections and certainty for commercial property, submitted signatures to place the initiative before voters on the November 2020 ballot.

Every commercial real estate organization - including BOMA California - has at some point over the last 30 years taken a position in opposition to split roll taxation – nothing in this measure changes that stance.

The measure itself is very clear in its actions:
  • Bring all commercial properties to a new assessed 2020 value that becomes the new base year for taxation.
  • Require that all commercial property be reassessed every three years thereafter.
  • Establishes an exemption for properties valued at less than $1 million – however this is a questionable exemption as the property is reassessed every three years eventually it will lose that exemption.
  • The measure removes all the tax protections provided by Proposition 13. 
  • Ends the treating of all property the same for taxation purposes for the first time in California’s history. 
BOMA California is taking a strong opposed position against any proposed split roll tax initiative. Studies have shown it will have a negative impact on values, put many small businesses and tenants out of business. It will cost jobs and impact negatively the overall economy of California.

Feel free to visit this website for information: http://www.stophigherpropertytaxes.org/

No comments:

Post a Comment