CA Property Taxes

grapedrink

Tom Curren status
May 21, 2011
12,459
3,334
113
A Beach
Amend Prop 13 with Prop 15.

Make businesses pay their share. Recoup Billions for public services
Isn't part of the problem that businesses pay more taxes per unit of value than residential, so it incentivizes municipalities to zone more commercial?

I wouldn't want to get rid of Prop 13 altogether, although I certainly think it needs reform. I think they should at least get rid grandfathering ridiculously low taxes to new owners when the original owner passes. None of this pass it down or put it in a trust crap and pay $500 a year BS. If your Mom dies and leaves you a beachtown home that you otherwise can't pay the taxes for, tough sh!t. You're welcome to cash out.
 

enframed

Phil Edwards status
Apr 11, 2006
6,375
1,801
113
Del Boca Vista, Phase III
I think they should at least get rid grandfathering ridiculously low taxes to new owners when the original owner passes. None of this pass it down or put it in a trust crap and pay $500 a year BS. If your Mom dies and leaves you a beachtown home that you otherwise can't pay the taxes for, tough sh!t. You're welcome to cash out.
I agree, and let's also lower the inheritance tax exclusion to $1M, and raise the estate tax rate back up to 55%.
 

hammies

Miki Dora status
Apr 8, 2006
5,336
1,554
113
Isn't part of the problem that businesses pay more taxes per unit of value than residential, so it incentivizes municipalities to zone more commercial?

I wouldn't want to get rid of Prop 13 altogether, although I certainly think it needs reform. I think they should at least get rid grandfathering ridiculously low taxes to new owners when the original owner passes. None of this pass it down or put it in a trust crap and pay $500 a year BS. If your Mom dies and leaves you a beachtown home that you otherwise can't pay the taxes for, tough sh!t. You're welcome to cash out.
Buddy of mine is in on the scam: he inherited his grandfather's house a few years ago which is now worth about a mil+. Pays $600/year.
 
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Kento

Duke status
Jan 11, 2002
58,392
7,017
113
The Bar
Isn't part of the problem that businesses pay more taxes per unit of value than residential, so it incentivizes municipalities to zone more commercial?

I wouldn't want to get rid of Prop 13 altogether, although I certainly think it needs reform. I think they should at least get rid grandfathering ridiculously low taxes to new owners when the original owner passes. None of this pass it down or put it in a trust crap and pay $500 a year BS. If your Mom dies and leaves you a beachtown home that you otherwise can't pay the taxes for, tough sh!t. You're welcome to cash out.
On the other hand, it's one less Trannysylvanian coming here to buy it up.

I don't know how it applies to Prop 13 but what if, like a Newport Harbor boat slip, there was a wait list for anyone out of state to rent/buy in CA?

Remember the overall goal is to get CA population to a manageable 2-3 million.
 

Bob Dobbalina

Gerry Lopez status
Feb 23, 2016
1,135
747
113
Isn't part of the problem that businesses pay more taxes per unit of value than residential, so it incentivizes municipalities to zone more commercial?
One of the problems that Prop 15 attempts to solve is that small, new business are at a tax disadvantage when competing with large, older business. Prop 15 attempts to bring taxes on large businesses in line with their property values. Basically, Disneyland, Hollywood studios (both massive land owners in CA) and other businesses benefit from the same loop hole that protects your grandparents on fixed income by freezing their tax rate to an outdated property value. Meanwhile, new business are taxed at a higher rate. The difference is, of course, Disneyland, Paramount Studio, and other large businesses are not on a fixed income.

Prop 15 brings property tax rates on large businesses up to current assessment rates, recouping an estimated $12 billion.
 

grapedrink

Tom Curren status
May 21, 2011
12,459
3,334
113
A Beach
One of the problems that Prop 15 attempts to solve is that small, new business are at a tax disadvantage when competing with large, older business. Prop 15 attempts to bring taxes on large businesses in line with their property values. Basically, Disneyland, Hollywood studios (both massive land owners in CA) and other businesses benefit from the same loop hole that protects your grandparents on fixed income by freezing their tax rate to an outdated property value. Meanwhile, new business are taxed at a higher rate. The difference is, of course, Disneyland, Paramount Studio, and other large businesses are not on a fixed income.

Prop 15 brings property tax rates on large businesses up to current assessment rates, recouping an estimated $12 billion.
I'd be all for that. What's the worst thing that would happen- Disney raising it's ticket prices even more: :ROFLMAO:
 

waxhead

OTF status
Mar 31, 2009
283
67
28
One of the problems that Prop 15 attempts to solve is that small, new business are at a tax disadvantage when competing with large, older business. Prop 15 attempts to bring taxes on large businesses in line with their property values. Basically, Disneyland, Hollywood studios (both massive land owners in CA) and other businesses benefit from the same loop hole that protects your grandparents on fixed income by freezing their tax rate to an outdated property value. Meanwhile, new business are taxed at a higher rate. The difference is, of course, Disneyland, Paramount Studio, and other large businesses are not on a fixed income.

Prop 15 brings property tax rates on large businesses up to current assessment rates, recouping an estimated $12 billion.

I think 15 will pass because most people don't own commercial property and don't think it will affect them. Then the landlords of those properties will raise the rents(many commercial leases have a clause that passes along property tax increases)to their tenants and those businesses will raise their prices.


What about small businesses that own their facility? Do you think they will absorb the doubling or tripling of their taxes? Or will they simply increase the price of their goods and services to offset the tax increase?

The problem with taxing the "rich" is that people think that they themselves won't have to pay the increases but they always do.
 
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Bob Dobbalina

Gerry Lopez status
Feb 23, 2016
1,135
747
113
I think 15 will pass because most people don't own commercial property and don't think it will affect them. Then the landlords of those properties will raise the rents(many commercial leases have a clause that passes along property tax increases)to their tenants and those businesses will raise their prices.
Possibly. But that depends on how much the lease/rental price is tied to expenses vs how much it is tied to a market of comps. In other words, are commercial landlords offering leases based on their bills or what they can get away with charging?

What about small businesses that own their facility? Do you think they will absorb the doubling or tripling of their taxes? Or will they simply increase the price of their goods and services to offset the tax increase?
The older, larger competitors that benefit from the Prop 13 loophole are already operating with this competitive edge. Business large enough to incur a higher tax rate that aren't already paying one will have to make those decisions.

The problem with taxing the "rich" is that people think that they themselves won't have to pay the increases but they always do.
Currently. yes. Tax the working class a little and they are incapacitated. Tax em enough and you get real social change. We'll see what happens.

Another option is for many companies to grow slower and make less profit, yet continue to survive rather than pass their expenses on to consumers. Usually this formula is reserved for actual workers.
 
Oct 29, 2012
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Let’s not forget that when Trump gave a giant tax break to corporations and the 1% he also eliminated the mortgage interest deduction, a measure specifically meant to screw California. But remember, since California is a blue state, it’s the Democrats fault, not Trumps. Am I right Magats?