PPIC: California Ready to Slay the Ghost of Jarvis

[Starry Messenger]

http://www.calbuzz.com/2012/12/ppic-california-ready-to-slay-the-ghost-of-jarvis/

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By a 57-36% margin, voters responded positively when asked this question: Under Proposition 13, residential and commercial property taxes are both strictly limited. What do you think about having commercial properties taxed according to their current market value? Do you favor or oppose this proposal?

Democrats favor the idea 66-26% and independents like the prospect 58-36%. Even Republicans are evenly divided 47-48%. Voters aged 18-34, who represent the future, favor the idea 65-28% but the idea is also popular among the most reliable voters, those 55 and older, by 56-39%.

Splitting the tax roll is a popular idea in every region of the state, among men and women equally and especially among Asians (65-26%) and Latinos (58-36%) but also among whites (56-38%).

In other words, there is a deep and wide mass base of support for modifying Proposition 13.

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[pinto]

1. Yeah! Hope this implies some legislative action down the road.

[Starry Messenger]

2. We'll have to build some pressure up I think.

A few weeks ago the Assembly Speaker was making faint noises of dismay at the thought of changing things. I'm keeping an eye out for union rumbles...this article came from one of my labor e-lists.

[ROBROX]

3. I PAID THE OLD RATE OF TAX BEFORE 1%

I think a change of the commercial rate may have companies moving their operations to other states just to escape taxes AGAIN. The good thing now is that many companies are moving to California just to decrease the expense of shipping stuff here that is bought here. Only after the law is changed will the great escape happen or the companies will pass the cost on to the MIDDLE CLASS as per normal.

[Starry Messenger]

4. I doubt it.

[Gormy Cuss]

5. That's still the rate. What changed is that commercial properties aren't paying that on market value

The way Prop. 13 defines a change of ownership has benefited commercial holders disproportionately over time because they can structure sales incrementally to avoid paying taxes on a higher basis. This is quite different from the way most noncommercial real estate is sold, where ownership transfer tends to be 100% in most transactions.

Changing the law to reflect the difference in how commercial real estate is sold would be prudent.