Post by AlwaysAnAztec on Jul 31, 2012 9:28:00 GMT -8
Horse pucky. Howard Jarvis was the primary lobbyist for the Los Angeles Apartment Owners Association. The primary purpose of prop 13 was to dramatically lower the property taxes of commercial property. A side effect, and the 'carrot' to get the prop passed, was that residential property wouldn't be reassessed or it's value dramatically increased until it was sold. What people don't realize is that commercial property is now wrapped up in a corporate onion and when a piece of commercial property is sold it is not reassessed because, technically, the property itself is not sold when the 'owning' corporation is.
THAT was the reason for prop 13.
Wrong again. Any time their is a change in ownership, or title, all properties get reassessed. If you are talking about corporations being sold and their properties being part of the sale. then I have to consult a tax attorney. But most commercial and income properties are owned by individuals, families, partnership and small corps.
When commercial get an increase in taxes, usually through a sale or a massive remodel, it is passed on to the tenant through the Triple Net clauses in their leases. If it is a gross lease it is passed on through higher lease rates the next time after leases expire or a new tenant is secured.
Jarvis might have been head of an apartment owners association, but Prop 13 was voted in to curtail Sacramento from blindly raising taxes on any'all property owners.
Gov. Brown was, and still is, a big detractor of 13. Why wouldn't he be? It hurt his carte blanche attitude to go after property owners at will.
Thats just it. Ownership of the property DOESN'T change.