Vote “NO” on Prop 15
Our worst recession isn’t the time for the biggest property tax hike ever.
California Proposition 15, the Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative, is on the ballot in California as an initiated constitutional amendment on November 3, 2020.
A "YES" vote supports this constitutional amendment to require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value, rather than their purchase price. Proposition 15 increases commercial and industrial property taxes $11 billion a year.
A "NO" vote opposes this constitutional amendment, thus continuing to tax commercial and industrial properties based on a property's purchase price, with annual increases equal to the rate of inflation or 2 percent, whichever is lower. A “NO” vote is a good vote!
With the November election approaching, the AvailableWarehouses.com team would like to remind its local property owners and businesses how Proposition 15 could have a devastating effect on the commercial real estate market. As taxes increase, so will the burden to the tenant to pay increased rental amounts.
Although the Industrial Real Estate sector continues to show good signs for the future, it is important that property owners and renters are aware of what is at stake in order to keep more money in their wallet and to keep tenants in their buildings. Prop 15 would allow for commercial properties to be taxed based on their current market value rather than their purchase price. Commercial properties would be reassessed every three years, creating property tax increases for Owners and Net tenants. If enacted, we could see property tax increases beginning as early as 2022-2023. A property tax increase could not come at a worse time for businesses and property owners who are still battling the economic difficulties of COVID-19. With the uncertainties ahead, it is imperative that commercial property owners and renters are informed about how this proposition will affect their business.