Public Employee Unions want to change Prop. 13 so busness property tax goes up & up more every year. (Los Angeles: sales, 2013)

[2sleepy]

Originally Posted by shooting4life

Home owners are doing similar actions to keep property taxes from being raised, why only hurt business? Let me guess, you own your own home and benefit from prop 13?

I think I made myself clear, businesses are using loopholes when they sell a property to avoid reassessment and it's rampant, so commercial properties change hands several times and they are never reassessed. If I sell my home the new buyer pays tax based on the price they pay for the property. I'm not supposed to be unhappy with that disparity?

And yes I own a home in California
PS I bought my home in California less than a year ago so when the property is reassessed I will pay almost 300% of what the previous owner was paying

[CA4Now]

Originally Posted by 2sleepy

businesses are using loopholes when they sell a property to avoid reassessment and it's rampant, so commercial properties change hands several times and they are never reassessed.

Something needs to change there. I don't know what happened to this proposal of over a year ago to close that loophole.
Two Assembly Democrats announce plan to close Proposition 13 loophole - LA Times

[NoMoreSnowForMe]

Originally Posted by 2sleepy

I think I made myself clear, businesses are using loopholes when they sell a property to avoid reassessment and it's rampant, so commercial properties change hands several times and they are never reassessed. If I sell my home the new buyer pays tax based on the price they pay for the property. I'm not supposed to be unhappy with that disparity?

And yes I own a home in California
PS I bought my home in California less than a year ago so when the property is reassessed I will pay almost 300% of what the previous owner was paying

Your property will not be reassessed as long as you own it. That's what Prop 13 did.

Or are you saying you should have been able to buy your house for the same price the original owner paid for it?

Or are you saying that you should be able to pay the same amount of taxes that the original owner was paying, even if the property you bought is now worth 300% more?

So, then the people who buy your property from you in say 20 years, should be able to buy it for the same price you bought it for?

Trying to work this out here.

And I don't understand your claim that businesses sell properties over and over to avoid taxes. When they sell it, they are no longer protected by Prop 13, so there is no incentive to sell in order to avoid higher taxes.

I think a lot of people hear claims that Prop 13 is the cause of all of the economic woes of CA. I can tell you that I was there, and I can remember huge crews of road workers all standing around watching one guy work. There was so much government waste of tax dollars it was absolutely insane. And if you know anything about govt budgets, you'll know that in order to get the same budget or a higher one for the next year, they have to spend and overspend their current year budget. Those were the days of $200 lightbulbs. They kept reassessing property to continue to fuel the insanity. The people rebelled and rightly so.

[shooting4life]

Originally Posted by 2sleepy

I think I made myself clear, businesses are using loopholes when they sell a property to avoid reassessment and it's rampant, so commercial properties change hands several times and they are never reassessed. If I sell my home the new buyer pays tax based on the price they pay for the property. I'm not supposed to be unhappy with that disparity?

And yes I own a home in California
PS I bought my home in California less than a year ago so when the property is reassessed I will pay almost 300% of what the previous owner was paying

When you give your house to your children they will take advantage of the same "loophole" and maintain the lower property tax rate. You could even adopt an adult then sell them your house and they would get your lower property tax rate.


So now that people are abusing the lower property tax by the loophole of allowing kin to pay thousands of less dollars per year than the person living 15 away.

[2sleepy]

Originally Posted by NoMoreSnowForMe

Your property will not be reassessed as long as you own it. That's what Prop 13 did.

Or are you saying you should have been able to buy your house for the same price the original owner paid for it?

Or are you saying that you should be able to pay the same amount of taxes that the original owner was paying, even if the property you bought is now worth 300% more?

So, then the people who buy your property from you in say 20 years, should be able to buy it for the same price you bought it for?

Trying to work this out here.

And I don't understand your claim that businesses sell properties over and over to avoid taxes. When they sell it, they are no longer protected by Prop 13, so there is no incentive to sell in order to avoid higher taxes.

I think a lot of people hear claims that Prop 13 is the cause of all of the economic woes of CA. I can tell you that I was there, and I can remember huge crews of road workers all standing around watching one guy work. There was so much government waste of tax dollars it was absolutely insane. And if you know anything about govt budgets, you'll know that in order to get the same budget or a higher one for the next year, they have to spend and overspend their current year budget. Those were the days of $200 lightbulbs. They kept reassessing property to continue to fuel the insanity. The people rebelled and rightly so.

I'm not complaining, I paid 3 times what the seller paid for the house, and I understand that my taxes will be 3x what they paid. I don't have an issue with that. What I was trying to point out is that businesses use loopholes to completely avoid reassessment when they sell the property-that is not right!

I'm not sure how I can make it any more clear than that, but if I have confused you please let me know and I will try to explain it better.

I think the California property tax system is great, when I lived in Nevada they reassess your house every 5 years and increases are limited to 3%, but they have this cute little trick where if your house goes up 15% they will increase your taxes by 3% per year for the next 5 years.

[2sleepy]

Originally Posted by shooting4life

When you give your house to your children they will take advantage of the same "loophole" and maintain the lower property tax rate. You could even adopt an adult then sell them your house and they would get your lower property tax rate.


So now that people are abusing the lower property tax by the loophole of allowing kin to pay thousands of less dollars per year than the person living 15 away.

The law was written to protect homeowners, not to provide tax shelters for corporations. The state loses at least 2 billion a year in tax revenue because of private equity buyouts, corporate purchases and bank mergers that were structured to avoid reassessment, which is only triggered when 50 percent of a property is purchased by a single owner. So if a business is sold to four people, its assessed value stays low -- as do its property taxes, a luxury homeowners don't get.

If getting rid of it it meant taking away the provision that does not require reassessment of private property when transferred to an heir, I would go along with that. As it stands, private households pay more than 75% of property tax in some counties; that disparity did not exist when prop 13 went into effect.

[V8 Vega]

Drug addicted hippies from the 60's are now our Democrat politicians with their stick it to the man attatude. Democrats hate busness and are to stupid to know that Busness funds all their welfare they want so bad.

[NoMoreSnowForMe]

Originally Posted by 2sleepy

What I was trying to point out is that businesses use loopholes to completely avoid reassessment when they sell the property-that is not right!

I'm not sure how I can make it any more clear than that, but if I have confused you please let me know and I will try to explain it better.

When a business sells their property, they no longer have to pay tax on it. So, there is nothing to avoid.

Are you saying that someone who buys a property from a business has a loophole that allows them to avoid paying taxes on the higher selling price?

Are you saying the businesses sell the property for the same price they bought it at, so the new buyer doesn't have to pay a higher tax?

Please explain how this loophole works.

You're making statements without giving examples or clarifying. And your statements are not logical. At least from where I sit. I'd say "stand," but I'm actually sitting .

[shooting4life]

Originally Posted by 2sleepy

The law was written to protect homeowners, not to provide tax shelters for corporations. The state loses at least 2 billion a year in tax revenue because of private equity buyouts, corporate purchases and bank mergers that were structured to avoid reassessment, which is only triggered when 50 percent of a property is purchased by a single owner. So if a business is sold to four people, its assessed value stays low -- as do its property taxes, a luxury homeowners don't get.

If getting rid of it it meant taking away the provision that does not require reassessment of private property when transferred to an heir, I would go along with that. As it stands, private households pay more than 75% of property tax in some counties; that disparity did not exist when prop 13 went into effect.

The law was passed to provide tax breaks for both residential and commercial properties.

Both private and business are following the law, you just think one out of the two is a "loophole"

The amount of housing has increased much more than the amount of new business in most counties.

My question remains, why is it ok for two property owners to be paying wildly different taxes when their properties are valued the same but it is not ok for businesses to to do the same?

[1AngryTaxPayer]

We were looking at property in TX and noticed that property tax would be about the same as our mortgage. That was a real eye opener. Basically a mortgage payment that NEVER ends.