Election 2020: Ballot measures to repeal limits on property taxation

As a Realtor in Southern California and resident of San Diego County (Oceanside, CA),

I did have several clients, colleagues and other industry professionals approach me regarding the following question:

Are there any ballot measures in 2020 repeal prop 13 from 1978

aka. will my property taxes increase?

Understanding what you are voting for can be quite difficult these days.

First of all, it should be said that proposition numbers can be reused every couple of years even if they are not directly related to each other. This can be the cause of some confusion; so let's review in detail what is out there:

People's Initiative to Limit Property Taxation, Proposition 13, is embodied in Article XIII (A) of the Constitution of the State of California. Proposition 13 was a direct decision by the voters in June 1978. The proposition decreased property taxes by assessing values at their 1976 value and restricted annual increases of assessed value.

Mello-Roos or Community Facility Act was introduced in 1982 as a reaction to proposition 13 which is limiting the local government's ability to increase the assessed value of a property and with that the yearly property tax. Mello-Roos allows the local government to obtain additional funding by imposing a special tax on its residents.

School and College Facilities Bond, Prop 13 on the March 2020 ballot has nothing to do with the reform of the original property tax, Prop 13 from 1978. This Proposition 13 would, if voted for, enable local government to raise additional funds to build more schools and college buildings, so Californians' property taxes could be impacted on a local level, eventually.

While both, the School and College Facilities Bond initiative and the People's Initiative to Limit Property Taxation, are called Proposition 13, one does not try to repeal the other.

In front of this backdrop, it should be mentioned that there are efforts to reform Proposition 13 from 1978, the People's Initiative to Limit Property Taxation, and remove caps for commercial and industrial properties in order to increase tax rates on their respective owners.

The initiative titled “California Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative” will slowly reform Proposition 13 by limiting the protection of proposition 13 to homeowners and small business owners only.

The initiative states that it will provide increased and stable revenue for schools, cities, counties and, local agencies by requiring that all commercial and industrial real properties are assessed at their full market value, while preserving in every way Proposition 13’s protection for homeowners and for residential properties.

I hope that the information in this post will help you on your way to learn more about Proposition 13 and make an informed decision. It is recommended to take the time and learn about the measures. And if you want to know how the real estate market reacts to a Presidential Election Year >>>click here<<<.

Make your voice heard because elections are decided by the people who go out and vote.

Please feel free to share this post in your network and feel welcome to share your thoughts with me, I would like to hear how you view this matter from your perspective kiniro@casqft.com

#realestate #propertytax #election2020 #electionyear #realty #california #Sandiego


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