“We’re discussing it, and I’ll leave it at that.”. That voters will be asked next year to consider a so-called “split roll” change to Proposition 13 has been known for months. Laws taking effect in 2021 will make California businesses offer employees more help to cope with the COVID-19 pandemic. Proposition 13 is still the third rail of California politics,” crowed Jon Coupal in the headline of an Internet posting days after the narrow defeat of November’s Proposition 15, which aimed to take the property tax benefits of the 1978 Prop. The California non-partisan and impartial Legislative Analyst’s Office estimates that California will generate $6.5 to $11.5 billion in additional tax revenues based on the existing number of $3 million valued commercial properties in the state. Thanks to Howard Jarvis, Paul Gann and Proposition 13, the assessment rate is now only one percent for all California property and annual tax increases are limited to no more than two percent. By Tom Elias, Yo! These ‘rogue’ deputies were fired. Given that real estate values may be lower due to the economic effects of the coronavirus pandemic and the passage of Prop 19 in the wings, current gifts of highly appreciated California real estate should be seriously considered. An estimate by the independent Legislative Analyst’s Office found that Proposition 15 would generate as much as $12.5 billion more in tax revenues once it fully takes effect in 2025. Coronavirus and COVID-19 pandemic and health news. Before Prop 13, in the 1950s and '60s, California was a liberal showcase. “This issue, I think, crosses a lot of lines. But eventually the protections of Proposition 13 will no longer extend to all residential properties. It has often been called the “third rail” of California politics because repealing it has historically been extremely unpopular. “The one issue that could not be talked about was commercial property,” Goldberg said. L.A. was far more vulnerable to an extreme crisis from the coronavirus than nearly anywhere else in the nation. California’s new workplace laws: COVID-19 safety, family leave and more. The coalition championing the Proposition 13 revision believes next year could be the best shot they’ll get at limiting tax protections to homeowners and mom-and-pop businesses. Dawn Wells, who starred as girl-next-door Mary Ann in the 1960s hit TV show “Gilligan’s Island,” died of complications from COVID-19. Current Law Transfers between spouses are exempted from the … According to California's Secretary of State, the initiative would undo the property tax caps of Proposition 13, but only for commercial and industrial … Opponents of the new ballot measure aren’t likely to attack the programs that would benefit from billions of dollars in new taxes. The Environment Prior to Proposition 13 Prior to Proposition 13, the property tax rate throughout California averaged a little less than 3% of market value. The concern that prompted Prop 13 was dramatically increasing property values that resulted in dramatically increasing property taxes that many homeowners couldn't afford. Prop 13 is largely considered untouchable in California. On June 6th, 1978, nearly two-thirds of California’s voters passed Proposition 13, reducing property tax rates on homes, businesses and farms by about 57%. It will get so bad that it will be cheaper to rent than “so called own” your own property. Their demand to downsize Proposition 13 by excluding most commercial property from the law’s strict tax limits is all but certain to win a spot on the November 2020 ballot, an epic campaign clash that could alter California’s political landscape for years to come. That initiative capped property tax rates at 1% of the assessed value with annual increases of no more than 2%. “But the broad perception of Proposition 13 has not changed that much in our polling.”. They said Proposition 13 was bailed out by the state surplus; and that the true effects of Proposition 13 were felt in the time of the 1990s recession. Few public polls have been released, though a slim majority of Californians surveyed by the nonpartisan Public Policy Institute of California supported the idea of higher taxes paid by commercial property owners. That was certainly true of Jarvis, the Los Angeles political gadfly who became an irascible tax fighter and the embodiment of the 1978 campaign. 65% of likely voters in a PPIC survey last year, perhaps the most well-known proponent of rethinking the landmark law, he hoped to instead negotiate a political truce of some sort, Appreciation: In just three seasons of ‘Gilligan’s Island,’ Dawn Wells left a lasting mark. “My desire is to use this as an exercise in bringing the parties together to see if we can compromise on a more comprehensive tax package,” Newsom said at the time. Few topics have been more intensely debated by public policy experts and interest groups than whether California’s commercial property owners deserve the same low-tax protections as homeowners. Most real property owners in California have at least a rudimentary understanding of Prop 13, the landmark legislation passed by voter referendum in 1978. 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