All tagged california property tax
While numerous attempts have been made through the years to repeal or amend the landmark constitutional amendment championed by Howard Jarvis, this is the first attempt to modify the underpinnings of Proposition 13 via a statewide vote. While the proposal for additional funding to school districts, community colleges and local governments is still scheduled for that vote, it has recently come under intense scrutiny throughout the state and recent polls have indicated that passage could prove difficult.
Net Operating Income (NOI) is the Holy Grail of real estate metrics. It establishes value and determines borrowing power, among other things. Protecting and enhancing NOI is what the game of property ownership is all about. Depending on the type of lease and product category, property owners are able to pass along some or all of the cost for property taxes during a lease. This ability is going to become even more important if this proposition passes.
For over 40 years all California property owners have enjoyed the protection of Proposition 13, the landmark law that limits annual property tax increases. However, state and local government officials, along with advocacy groups promoting more government programs, have not shared that fondness for the law. In fact, there have been numerous attempts to repeal or modify Proposition 13 over the years, and the most significant of those efforts will be on the general election ballot in November of 2020.
