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1972 – Over 45 years of service to the commercial industrial retail real estate industry – 2018.

2020 MAY SEE TAX BATTLE ROYAL

September 27, 2019

Dan Walters, from Sacramento Bee Political Columnist, now writing for CalMatters lays out some thoughts on the looming expensive fight on split roll and other tax items in 2020:

Although the state is enjoying multibillion-dollar budget surpluses, thanks largely to a vibrant economy, California voters may face a bewildering array of tax increase proposals next year.

This seemingly contradictory situation is being driven by an assumption — probably accurate — that the November 2020 election will see a massive turnout of voters eager to oppose President Donald Trump’s re-election.

Those anti-Trump voters, it’s also assumed, would likely be willing to impose new taxes on corporations and wealthy individuals. So, tax advocates see it as a golden, even unique, opportunity.

One measure, which would remove some of Proposition 13’s property-tax barriers, has already qualified.

However, the union-led backers of that “split roll” measure, which would raise taxes on warehouses, hotels, office buildings and other commercial properties by an estimated $11 billion a year for schools and local governments, set it aside after spending several million dollars to qualify it. They are now proposing a substitute.”

Their initiative had drawn sharp criticism from county property-tax assessors about its workability and opposition from small-business owners who said it would raise their rents.

So, the backers, the “Schools and Communities First” coalition, made several revisions to quiet the critics before launching a new signature-gathering effort, although it’s uncertain the group will succeed.

The commercial real estate industry and its allies have pledged to spend $100 million to defeat the split roll measure. The California Taxpayers Association and others have formed “Californians to Stop Higher Property Taxes” to marshal opposition. And the California Chamber of Commerce has created the “California Tax and Budget Project” to block extension of sales taxes to services.

Click here to read the full story at CalMatters.

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