It is the value on the property not the business, if less than less than three million no issue. Every shopping center, office building and other commercial property over $3m with triple net tenants will be effected. That means almost all businesses with triple net leases could get hit with a tax bill up to ten times their current rate. This bill was written by communists for communists. Looks like Becerra will turn CA into Venezuela in one fell swoop. The good news there will immediately be a lawsuit based on the fourth amendment. People forgot how awful it was before prop 13. Your neighbor sells his house for double what yours is worth and your prop taxes would double.
In the 70s there was massive government caused inflation. This caused property taxes to double or more. People on fixed incomes were forced from their homes, businesses failed. Property taxes need to be stable source of income not a method of confiscation.
How will the property value be assessed? Market won’t allow property value to be over 3M anymore unless it’s far above 3M. Like properties valued between 3 and 6 will all fall down to 3.
Why give Newsom more money
Marks said California had a record-high tax roll in 2020, with a 5.8 percent increase generating $604 billion. For the past six years, the income generated has increased by 5 percent, which is “a steady, reliable revenue for government.”
Values will be assessed by rents and market forces just like they are now. Prop 15 is so unstablilzing that we have no idea what values will be. If it was phased in over ten years it would be much more effective in actually raising revenues. It is current state it is insane
This was written by angry leftists trying to stick it major corporations. Stupid bill written by stupid people, being voted on by people that have no clue.
Not to mention the hundreds of thousands of appraisals that have to be done every year.
If Prop 15 passes there may be buying opportunities in RE whose tax value is already around say 2.8M. In less than 10 years it will get over 3M and the owner may panic sell soon. Many of these properties may be languishing and you can spruce it up to make better use of.
There maybe buying opportunities. Just like in stocks. This covid19 recession is far from over
This SFH in SF is pretty darn cheap. At least the asking price. Not in a trendy part of town though.
https://www.redfin.com/CA/San-Francisco/662-Moscow-St-94112/home/1256990
New Spike in Bay Area Unemployment Claims
Now I believe why a lot of apartments is empty.
Remember that once eviction moratorium is over there will be another huge exodus from entire SF Bay Area and CA. No one is leaving because they get to stay for free.
Huge exodus and vacancy will create the next foreclosure wave.
Rents are down in the city and south bay and spiking like crazy in Sacramento. Sacramento rents are up over 20% this year…
Bayarea is not very diversified economy . it will continue to lose jobs to global competition.
Many Bay Area tech companies silently shedding the employees now.
How are they doing it silently? State law requires public disclosure if layoffs above a certain threshold.
What’s the threshold?
The real exodus will begin now
I think it’s anything above 500 or a certain percentage, whichever is lower. It’s not very high.
Reddit has like 500 people or something?
Yes, they are all doing it piecemeal every month, but reported to proper authorities, like EDD, by HR team.
Since press is interested in elections, they do not give weightage to any of these companies!
Real question is when the we gonna see the price reduction for SFH in SF?
This is one sold in a week same neighborhood where I live.
List 1.2m sold for 1.45M in one week.
https://www.zillow.com/homedetails/2050-22nd-Ave-San-Francisco-CA-94116/15115812_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare
More than 1k a ft for a Sunset house. That’s more than I’d expect…