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  • DOES COMMERCIAL REAL ESTATE PAY ITS “FAIR SHARE?”

    Posted: November 12, 2013 | Posted by Crystal Whitfield | No Comments

    “But commercial real estate doesn’t pay its ‘fair share!’” is a an oft repeated – AND FALSE – assertion that you will often hear.

    This misperception is innocently held by some – but is aggressively pushed by others that know, or should know better.  For the former group of individuals we hope the following information will help you provide facts and inform them why Proposition 13 has been a huge benefit to the residents of the State of California.

    Since the measure passed in 1978 the ratio of taxes paid by homeowners and commercial properties has actually increased for business properties.

    A recent study  by CalTax  (“Proposition 13 Revisited” based on data from the State Board of Equalization) found that non-homeowner occupied property subject to Proposition 13 assessment limits accounted for 60.26% of the tax burden in 2011-12, up from 58.16% in 1979-80 (after passage of Proposition13).

    In terms of total dollars, in 2011-12, all business and non-homeowner occupied property subject to Proposition 13 assessment limits had an assessed value of $2.49 trillion (an average increase of 7.5%), while homeowner-occupied property had an assessed value of $1.64 trillion (an average increase of 7.2%). Both of these increases surpass the rate of inflation, meaning that income collected from property taxes is actually increasing over time.

    These numbers – provided by the State of California – clearly show that the property tax burden has not shifted to homeowners and in fact, the measure continues to greatly benefit them.

    See below for more information from this comprehensive study.



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