July 19, 2024

Huge California property tax increase possible

California out to repeal Prop 13

San Diego California Real Estate - repeal Prop 13

To All my California friends on either side of the isle. Don’t be fooled by deceptive wording like the gasoline tax, please read below this affects us all.

California out to repeal Prop 13

California real estate - New California Real Estate Tax

Major property tax increases are on the launch pad as California politicians try to repeal prop 13 by slipping it under the radar. California’s Attorney General, Xavier Becerra is putting together plans to raise property tax by 12.5B every year by eliminating the only thing keeping some people’s property tax from sky rocketing, Prop 13. Because they know it will be unpopular when presented under “Repeal Prop 13,” Xavier Becerra has strategically relabeled it under “Education and Local Government Funding.” It’s already on the 2020 ballot and like the gas tax, it will be worded in a way that confuses California voters. People renting will see it as a way to get free stuff but the long term result will be more renters and higher rent to pay for he increased housing costs. In a state where people are leaving by record numbers and people are fighting to hang on, this could be something that changes the face of business ownership in California forever.

Voters in California should keep in mind that just like with the gas tax this proposition has a less than truthful heading on it. Personally, I think that it’s probably somewhere over 98% of the people just read the headings of the propositions and never get into the details. That’s why the heading of the propositions are so important, and the job to see that they really reflect the intent of the proposition was given over to the California Atty. Gen.

But just like we saw with the gas tax repeal proposition that was just meant to repeal the increased gas taxes and registration fees, the heading that the Atty. Gen. put on it was very misleading as it implied that it would take away money from road repairs and bridge and safety issues. Many believe that the original gas tax was sufficient tp take care of all the road repairs and bridge safety issues if Sacramento did not just use approximately 20 to 25% of the gas tax for road repair and siphoned off the other 75% of the gas tax revenue to the general fund.

It looks like the same thing, a misleading proposition title is going to be used again to trick the voters in California to vote for this. It affects just commercial properties and I’m sure you’ll be told that your own home’s tax base will remain untouched. Although this is essentially correct, at least for now, what they’re not telling you is if you currently own real estate investment properties your taxes are going to go way up. Plus, even if you’re not a property owner, you are going to be affected. I’m pretty certain that the politicians in Sacramento are going to try to turn renters against property owners in pushing this proposition.

What renters should really think about and all Californians for that matter, should think about is let’s say your dentist is renting an office, and now that office building is hit with a huge tax increase because it’s no longer protected under proposition 13. Well, guess what your dentist is going to be hit with a huge rent increase, and this is sure to be reflected in his billing to patients for his dental services.

What about grocery stores? Yes, grocery stores are commercial properties! If the tax bill goes up tremendously on your local grocery outlet what do you think is going to happen for them to stay in business? Yes, all their prices are going to be increased.

For renters if you’re landlord has his tax base raised, you can be certain that your rent will be going up as well.

Don’t fall for this deception by the Democrats in Sacramento, this is just another money grab that’s going to affect all the residents of the state! Watch out for the deceptive commercials which will no doubt try to divide renters against real estate investors. Be assured this is a major deception just like the gas tax repeal was against all Californians.

Proposition 13 was approved by California voters in June of 1978 and limits the tax rate for real property (real estate) to 1% of the full cash value of such property. In layman’s terms, this keeps your property taxes from adjusting each year to the value of the home and instead limits the annual increases to a maximum of 2% per year. Can you transfer your Prop 13 taxes to another property? The simple answer is yes, you can transfer your property tax to another home assuming you meet the eligibility requirements. The main requirement is that you are 55 years of age or older and that the home is your primary residence. There are other requirements as well. What is Prop 60? Proposition 60 (Prop 60) allows homeowners who are 55 years of age or older to sell their primary residence and transfer the base year value of that property to a replacement residence if certain conditions are met.

All my California friends and family, please send a like to this post to all your contacts, as this must be defeated.

For more info on Prop 13 click here.

 

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