Here are follow up notes from GAOR’s Government Affairs Legislative Update
There are three propositions on the November ballot that should be of interest to REALTORS®:
Prop 15 (known as the Split Roll Initiative) would tax commercial property based on its market value, rather than the price at which it was purchased (the way residential property is taxed). Owners of commercial properties valued at a cumulative $3 million would see their properties reassessed at least every three years. CAR has not taken a position on this measure yet.
Prop 19 is the CAR-sponsored initiative that would allow all homeowners who are over 55, disabled, or victims of natural disasters to take their property tax base with them when they sell their homes and buy a new one. Should the new home have a higher tax value than the old one, the homeowner would pay a blended rate of the old and new home. It also says that if you inherit a home from a parent or grandparent and decide to rent it out, the property will be reassessed to today’s market value. The new taxes generated from the measure would go to fighting wildfires. CAR supports this measure.
Prop 21 expands local governments’ authority to enact rent control on residential property. In cities with rent control, it would only exempt from rent control single-family homes owned by a person owning two or a few residential units. Rent control ordinances would only apply to new construction built before the last 15 years. The initial rent to be charged a new tenant, combined with any additional increases for the next three years, can not be greater than 15% of the rent charged to the prior tenants. CAR opposes this measure.
See a list of all the Upcoming Propositions here.