Prop. 15 – Some Professional InsightNovember 3, 2020
In case you haven’t been able to dive into the issues with Prop. 15, I thought I’d share the the most recent email that I received from a commercial real estate attorney who has a specialization with the A.I.R. Commercial Real Estate Forms. The attorney’s name is Usman Mohammed with Consensus Legal P.C. Prop. 15 will change how property taxes are handled on commercial property by raising property taxes. If Prop. 15 passes, it won’t just affect commercial property owners but it will affect all of us as the increase in taxes will be passed along to the tenant and then the tenant will pass along the added operating costs to the consumer. Hopefully, my readers already know this but in case you don’t, please see the info below.
Prop. 15 – Recent Polling and What You Need To Know Before Election Day
Tuesday, California voters will decide whether to partially roll back Prop. 13, the historic 1978 proposition limiting property taxes in California. Do recent polls indicate Prop. 15 is likely to pass?
A recent poll indicates opposition to Prop. 15 is growing,
however, more remain in favor of Prop. 15 than oppose, according to the poll.
In this poll completed on October 21, 49% support Prop. 15, while 40% oppose. In the same organization’s poll one month earlier, 49% were in favor of Prop. 15, and 34% were against. Therefore, those against Prop. 15 grew by 6%, while those in favor remained the same. (Source: Berkeley IGS Poll)
Of course, this is just one organization’s polling. Although most polls indicate more voters support Prop. 15 than oppose, at least one poll (completed on September 2), indicates that Prop. 15 does not have sufficient support to pass (41% in favor, 49% against). (Source: Probolsky Research)
Prop. 15 Questions and Answers
In our coverage of Prop. 15 over the past few months, we have addressed a number of different aspects of Prop. 15. The following is a list of questions about Prop. 15, as well as links with the answers:
- How will Prop. 15 change California property taxes if it passes? The overview is here.
- Will tenants pay the increased property taxes if they enter into AIR CRE leases in 2020? The answer is here.
- Which commercial properties with a market value of $3MM or less are exempt from Prop. 15 re-assessment? The answer is here.
- Does Prop. 15 reduce taxes on certain business equipment? The answer is here.
- Should brokers add “Prop. 15 Protection” to LOIs? Read the details here.
- How does Prop. 15 deal with mixed-use properties that have residential and commercial uses? The answer is here.
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