San Diego Housing Market News and Analysis
prop 15 (split roll)
User Forum Topic
Submitted by phaster on October 2, 2020 - 3:06pm
in other news,...
Every tax system has its inequities BUT a predictable property-tax system is superior to a volatile “market value” system. This is because it lessens bureaucracy and the associated perverse incentives like “fiscalization of land use” which was pointed out by bay area Democrats in a 2017 panel discussion.
Actually in 2014, San Francisco–based state Senator Tom Ammiano, a Democrat, proposed legislation to redefine “ownership change” for businesses that makes more sense than Prop 15 (which is on the November 2020 ballot).
Basically the legislative fix tackles “abuses” AND would have generated increased tax revenues
The issue is simply fixed by defining an “ownership change” as having occurred whenever at least 90 percent of a property shifts hands, regardless of whether any one owner ends up with more than a 50 percent stake in a property.
On the surface, the Ammiano bill seemed likely to pass: The GOP wasn’t averse to the reform, the California Chamber of Commerce came out in favor, and the Howard Jarvis Taxpayers Association made statements indicating the group could live with it. Yet the bill died—and not just, or even primarily, because of corporate opposition.
Paradoxically, many progressive politicians opposed it, as did organized labor and a large number of community groups who believed the bill was far too narrow in scope and worried it would take the wind out of a bigger and broader reform movement that was finally coming into its own—one that wouldn’t just change the definition of ownership, but would also require regular reassessments of the value of commercial real estate, both the buildings and the land on which they sit.
With covid-19 there is a very real problem that passage of Prop 15 is a high cost in lost jobs and leakage from businesses relocating out of state.
~Active forum topics~