July 12, 2024

Proposition 15 Defeated

San Diego home prices - Proposition 15 Defeated

Proposition 15 was defeated by a margin of more than 650,000 votes (52% No – 48% Yes).

Proposition 15 was set up to be a major blow to the protections of the original proposition 13 that protected real estate taxes from going crazy in the state of California due to the legislatures constant desire to raise taxes to fund what is becoming a massive welfare state.

California Proposition 15 Defeated

The politicians were hoping their tried and true method of setting the electorate against supposed large corporations and loopholes in the California tax system. The proponents of this measure kept repeating that it would not affect single-family homes but just large industrial and office properties. If it would’ve passed, taxes on almost all commercial and industrial properties would have gone through the roof and thereby raising cost for all goods and services throughout the State. I don’t think that an Amazon warehouse facility that would’ve been affected by this tax increase would have closed or relocated, no, they would have just had to increase all their prices to compensate for the higher property taxes. The same scenario would be true of your local dentist or accountant who had an office in a strip mall or downtown office building.

Luckily, the California voters saw through this thinly disguised measure, which if it would have passed would’ve been the largest tax increase in the history of California!

More than 7 million California voters recognized this reality and voted to stop this ill-advised initiative. The defeat of Prop 15 can not only be seen as a rejection of this specific harmful measure, but also as a broader call to our California elected leaders to stop enacting costly policies that hurt farmers, consumers, and businesses.

So, is it time to celebrate the defeat of proposition 15? The answer is yes, to a small extent. Because of California’s propensity to continually spend more and more on unnecessary social progressive programs, there can be no doubt, and one should really expect that California lawmakers would not seek new revenue from sales, personal income or corporate tax rates without going to voters.  Also, keep in mind, that Gov. Gavin Newsom endorsed Proposition 15, and now with it’s defeat, I believe that he will be eager to find new sources of revenue which may include an increase in the base California sales tax rate. There has been some talk of raising the California a sales tax which is now 7.2% (keep in mind cities and counties add their own sales tax rates to the base rate), up by two percentage points, to 9.2%! A move like this would cause the vast majority of cities and counties to end up with an actual sales tax of well over 10%!

It’s well past time that the California voters stand up and vote down every revenue/tax increase proposal on all future ballots. And, also send a notice to the state lawmakers that if they will try to raise taxes without a vote of the people they will be voted out of office!

www.brokerforyou.com *** This 21 year old San Diego real estate is for sale! Also, aged real estate sites in many California cities are for sale.

 

++++++++++++++++++++++++++

Visit our Youtube San Diego real estate channel