Voters will have an opportunity to significantly reshape California’s real estate industry, as three potentially game changing ballot measures will be on the ballot this November.
The first measure, Proposition 15, would revise the property tax rules that were adopted under 1978’s controversial Proposition 13. Under Prop 13, property taxes are only updated in the case of a sale. As a result, thousands of high-end local properties have tax assessments based on a purchase price from decades earlier.
According to the article published in the Los Angeles Times, Prop 15 would create a set of new rules for commercial property taxes. The measure would allow market-rate values for commercial and industrial properties to be used as the basis for assessing property taxes owed.
The second bill, Proposition 19, would provide a tax break to California homeowners 55 or older. If approved, older residents would be able to purchase a new home and keep their property tax payment at the same level or a reduced rate.
Finally, Proposition 21 is being presented as a scaled down version of 2018’s failed rent control initiative Proposition 10. If approved, Prop 21 creates a path for cities to cap rent hikes at five percent on rental housing 15 years or older. Unlike Proposition 10, this year’s law would exclude most single-family homes from the rent control policy.
