Posted on 09/02/2018 9:37:39 AM PDT by SeekAndFind
Eight hundred fifty thousand signatures have been gathered in California in support of a voter initiative that would supposedly increase property taxes by 2020 for commercial and industrial properties to get around Proposition 13 property tax protections. The initiative would leave small business and residential properties alone. It is called the California Schools and Local Communities Funding Act. But raising property taxes on leased commercial properties would result in lower tax revenues.
What Is Split-Roll Property Tax?
A split roll tax means applying a tax formula for commercial and industrial properties different from the formula applied for residential properties. The tax roll is an official breakdown or list of all the properties to be taxed.
California Proposition 13 protects property-owners from very high or very low re-assessed property values each year by increasing the base value of a property by not-to-exceed 2% per year for inflation. The market value of properties is taxed at a 1% base tax rate and is re-assessed upon re-sale, not each year. Activists want the reassessments pegged to market value appreciation not a fixed 2% each year.
Existing:
Base Market Value: $2,000,000
Base Tax @1%: $20,000/year
Annual Adjustment @2%: $20,400 – 1st year
Annual Adjustment @2%: $20,808 – 2nd year
Income Property Markets Work Inversely to Taxes
Most policy-makers think higher tax rates result in greater tax revenues. But income-producing property markets work inversely by lowering property values when taxes are increased. This market adjustment process is called by the term "tax capitalization," which means converting the net income of a commercial property into a higher or lower value depending on the change in net income.
Split Roll Added Tax Estimate Omitted "Tax Capitalization"
The California Legislative Analyst (LAO) has forecast that a split roll property tax would generate $10 billion annually in net additional taxes.
(Excerpt) Read more at americanthinker.com ...
What to do, what to do...
Well the surrounding states will welcome new businesses. Hmmm, what I don’t like about this is the liberal employees following the business.
Anything to feed the voracious appetite of the pie in the sky politicians of California.
Little tweak
Most of the idiots signing the Petition have no idea what the heck they are doing.
I’m sure the People with the Clipboards are telling them that it will make EVIL Big Business pay their Fair Share or something similar.
The Politics of Envy knows no limits.
DemocRATS hard at work, trying to RAISE TAXES!
Keep in mind that the Leftists, in fact, absolutely KNOW that they won’t get more money in. The REAL prize is being able to CONTROL the decisions that property owners must make, so in the long run private property ownership becomes a liability, not an asset. This in turn makes the government have more direct control over both the property as well as the citizenry.
In short: The expected shortfall is a FEATURE, not a BUG, intended to oppress the citizenry even more. Pure and simple.
Fortunately the US is a republic. Cal not so much.
Its on the same order as the appropriation of the farms in South Africa. Result will be the loss of the productive part of the economy and voila...Zimbabwe, Venezuela, South Africa and then California.
Divide and conquer.
Start with commercial properties, and residential properties would soon follow.
So they’re going to Rick-Roll taxpayers?
Just another commie leftist way to steal even more of people’s money from them. Everything you buy including gas meals clothing and of course if you rent — all will necessarily go up a lot more than they already have as merchants and landlords have to cover their higher tax bills. And a good hamburger is already $10, gas is pushing 3.50 to 4.25, and rents are pushing $3000 for one bedroom and $6000 for a small old tract house — figure ten percent more , varying of course — for every body in that state. Ascthe politicians get richer and richer. Leeches. Blood leeches
And don't just tax land / improvements that the corporation owns; tax property the corporation benefits from. For example, Apple has 300,000 employees in China. They must show up some place to work. So if California taxed that real estate because of the benefit Apple gains from it and uses to sell phone in California, the Chinese dirt/building/roads etc. should be subject to California tax.
Yes, I know that sounds crazy to people reading it on FR, but we are not the audience. Government in California is the audience. And I bet this all makes sense to them.....
do you know if it’s legal for a state to tax out o stet property
No I don’t, but “legal” seems to be one of those words that means different things to different people. And, again, we are talking about California, where rules seem to be different.
Just cut to the chase and rename the state “Venezuela del Norte”. (Because Starnesville sounds too gringo).
California residents and businesses clearly have too much excess cash or assets. It is politicians jobs to relieve them of that cash.
This is our Last Chance to permanently destroy the Middle Class in this State, Since Donald trump took Office the middle Class began bouncing back and making inroads to a better life and prosperous future. There is no way in hell these newly prosperous people in the Middle CLass will ever vote for us now, so we need to DESTROY their Jobs and make damn sure they Need Welfare and Government subsidies.
WE NEED TO STOP IT NOW!!!
The more we give tax cuts to the wealthy the more they become Democrats and libs. Those people who would be most effected by this are the same people (wealthy rinos and self appointed elite libs) who are open borders and are the people who are really destroying California. I say let them pay the taxes.
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