Poll

Prop 13 keeps property taxes low for residential and commercial properties by only allowing governments to add 2%/year to the market price..  On the NOV 2020 ballot, voters can exclude commercial properties from Prop 13 protection.  Do you think we should

yes - Commercial properties should be excluded from prop 13. (pay more property taxes)
6 (35.3%)
no - Commercial properties stays the same with prop 13 protection. (same as today)
7 (41.2%)
I need more information
4 (23.5%)

Total Members Voted: 17

Author Topic: PROP 13 & commercial properties  (Read 876 times)

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Online zubs

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PROP 13 & commercial properties
« on: August 16, 2019, 09:44:55 AM »
I heard on NPR that Prop 13 is getting challenged next year.  Our CA government wants more money, and they found one weird trick to get the money....


by taking commercial property off prop 13 protection.  What do you guys think?
I think warehousing prices and other commercial properties would crater.


Here is some info on it:
https://calmatters.org/economy/2018/08/prop-13-could-be-party-undone-in-2020-heres-what-you-should-know/
« Last Edit: August 16, 2019, 09:53:30 AM by zubs »

Offline Kings

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Re: PROP 13 & commercial properties
« Reply #1 on: August 16, 2019, 10:26:20 AM »
sounds like a great way for CA to drive more businesses out

Offline aquabliss

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Re: PROP 13 & commercial properties
« Reply #2 on: August 16, 2019, 10:28:50 AM »
Who would vote for this!?  If this wins someone is stuffing the ballot boxes.

This is a slippery slope and clear progression for CA to get rid of Prop 13 for residential properties.

Offline irvinehomeowner

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Re: PROP 13 & commercial properties
« Reply #3 on: August 16, 2019, 10:30:55 AM »
Isn't Mello Roos the Prop 13 roundabout?
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Offline misme

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Re: PROP 13 & commercial properties
« Reply #4 on: August 16, 2019, 10:42:56 AM »
The original intent of the measure was to prevent Grandma from being taxed out of her paid off home.

I don't see why that protection should be afforded to corporate owners of commercial properties.
 

« Last Edit: August 16, 2019, 10:51:09 AM by misme »

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Online zubs

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Re: PROP 13 & commercial properties
« Reply #5 on: August 16, 2019, 10:45:46 AM »
I don't disagree with you misme, but prop 13 makes me rich.
If I didn't own property from years ago, I would try to weaken prop 13.

But I vote with my pocketbook.

Offline lnc

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Re: PROP 13 & commercial properties
« Reply #6 on: August 16, 2019, 11:09:43 AM »
sounds like a great way for CA to drive more businesses out

Agree. 

One reason some of manufacture business can still survive in CA is due to low commercial property tax if their property was bought decades ago.   But if this pass, it will be the final straw for a lot of business.

It will also affect a lot of strip mall operators.  A lot of older strip mall will need to raise rent significantly to cover the tax increase and their tenants will pay for it.  And alternatively, we the consumer will pay for that. 

Long time ago I was all for abolishing Prop 13 for commercial properties but more I think about it, more I'm against it.

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Offline paperboyNC

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Re: PROP 13 & commercial properties
« Reply #7 on: August 16, 2019, 03:44:10 PM »
I am not for a blanket abolishment of Prop 13 for commercial properties. I think that the loophole of keeping the low rate after a sale for commercial properties should be done away with.

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Offline Park

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Re: PROP 13 & commercial properties
« Reply #8 on: November 13, 2019, 06:52:36 PM »
Don't tenants pay market-rate rents? 
Why should long term property owners like the Irvine Co. be allowed to pay something like $1000/yr on property tax for commercial property valued well over $1M.  They should be paying $10,000/year like everybody else.  Its why there are mello roos and high gas taxes and high income taxes and high sales taxes in CA.  I'm all for equalling tax liabilities on similarly valued commercial properties for new and long term owners.  Newly owned commercial property taxpayers subsidize the tax liabilities of longterm commercial property owners is, in my opinion, unjust and unfair.

Offline qwerty

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Re: PROP 13 & commercial properties
« Reply #9 on: November 14, 2019, 04:59:18 AM »
The ballot should be to remove prop 13 alltogether. I would be paying about 4-5k less per year in taxes (property Taxes + mello Roos) than if I just paid 1% on the value of my house

Online zubs

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Re: PROP 13 & commercial properties
« Reply #10 on: November 14, 2019, 08:42:08 AM »
The ballot should be to remove prop 13 alltogether. I would be paying about 4-5k less per year in taxes (property Taxes + mello Roos) than if I just paid 1% on the value of my house

If prop13 is repealed, mello roos gets reapealed too?

Offline nosuchreality

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Re: PROP 13 & commercial properties
« Reply #11 on: November 14, 2019, 09:55:17 AM »
The ballot should be to remove prop 13 alltogether. I would be paying about 4-5k less per year in taxes (property Taxes + mello Roos) than if I just paid 1% on the value of my house


If prop13 is repealed, mello roos gets reapealed too?

No they don't.  Mello Roos are a product of the Community Facility Act of 1982. 

You will get market rate property tax and Mello Roos on new builds.

 

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