November 17, 2009
They have fantastic names, “Protect Homeowners and Close Corporate Tax Loopholes Act” and the “Education and Taxpayer Fairness Act”, but the consequences could be pretty dramatic.
The first would require reappraisals every three years on commercial property. The second would raise property taxes on commercial property by 55%.
If any of these get the required number of signatures, they could show up on the ballot and be enacted as soon as January 1, 2011. For years many landlords have taken Prop 13 for granted and have been happy to dole out caps on operating expense and real estate taxes. Some have been more wise and excluded property taxes from the equation, but with the massive budget and fiscal problems the state is facing, we might see more landlords sit up and take notice. Tenants should still continue to push for caps on taxes and operating expenses where possible, but I suspect fewer and fewer landlords are going to concede on this issue, particularly if the 70,000 signatures required are gathered.
The full filings are embedded below:
[via Globe St.]
- Property Tax Appeals: The Impact on Government, Landlord, and Tenants
- Proposition 13, Property Taxes, and Tenants
- S&P Cuts California Bond Ratings
- Capital Gains Tax Hikes Loom; Proposition 13 Tax At Risk
- Studley Says…