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

SPLIT-ROLL TAX BILL STRIKES AT PROP. 13

April 21, 2014

As we reported last week a bill that would implement a de facto split roll parcel tax passed its first legislative test and is moving forward in the Legislature. We are a key part of a large coalition of groups fighting this bad idea. A piece over at calwatchdog.com has some more detail and color about the bill:

“Chartered property appraiser Charles Warren of Pleasant Hill told CalWatchdog.com that a split-roll parcel tax could end up encouraging property demolition for marginal properties. He asked, ‘How much property value will be raised if a lot of buildings gets bulldozed? Or will it be a land tax? If a land tax, it will encourage higher density development that could be blocked by growth controls in local communities.’”

“Thus, small commercial building owners could be hit by a school parcel tax with no way to develop their properties to a higher use to offset the higher taxation. Warren warned, ‘Given 5 percent capitalization rates, for every $1 per square foot of tax a property would take a $20 per square foot hit on property value.’”

Click here to read the full article.

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