Proposition 13! What does it do for Californians- what we need to do about it?
Proposition 13 has protected California home owners and taxpayers. While our sales and income taxes have increased and currently to be the highest in the nation, property taxes remains low and predictable. Home owner can expect their base property taxes will be 1% of their assessed valuation and will rise at a rate of no more than 2% per year. Before the Proposition 13, the average tax rate increase was 2.67. On top of that homes were revalued frequently. During times of rapid property inflation we experienced the increase of the property taxes nearly to double in some areas. This was hardest on our seniors and those on fixed incomes. Recently, local elected officials were solicited by a San Francisco based organization called “Evolve” that was drumming up support for an effort to change Prop.13 by reducing or eliminating the protections for commercial properties. This would represent a $6 billion tax increase with money going to local governments throughout the state. This $6 billion tax increase will show itself in higher rents as building owners recoup the taxes from their tenants. Business owners get hit with higher occupancy costs. The biggest possible impact will be in the increased unemployment. Pepperdine University estimates that the so-called split role will result in a loss of 390,000 California Jobs initially and the continued loss of 100.000 jobs each year thereafter. If the high-tax-lobby can increase the commercial property tax now, they will be back in the future to raise taxes on residential properties. We should all respond with a resounding NO to this San Francisco-based tax grab.
Sourced and written from OC Realtor magazine article by Mr. Keith Curry Newport Beach Council Member.