Support Still Mixed For $10B-Plus Tax Hike On CRE Properties In November

Bisnow Bay Area (August 14, 2020) The debate over California's long-standing limit on commercial property tax increases is heading to the finish line after years of contentious jockeying on both sides. In November, California voters will decide whether to repeal part of Proposition 13, a 1978 state ballot measure that put property taxes on residential and commercial properties at 1% of the purchase price and caps reassessment increases at 2% per year. In its place, Proposition 15, otherwise known as "split roll" or, officially, the California Schools and Local Communities Funding Act of 2020, will reassess commercial and industrial properties valued at more than $3M to fair market rate. Allen Matkins Associate Jared Kassan said he thinks "the pandemic probably hurts the measure." The argument made by opponents that a partial repeal of Prop 13 will lead to a full one, and thus homeowners will eventually be taxed more, is an effective one, he said.  "People are probably going to be a little more apprehensive about voting for something that’s going to likely increase their taxes," Kassan said. Read More