Prop 13 reform to be on 2020 ballot (Sacramento, Oakland: apartment complexes, approval, rated)

[V8 Vega]

But thats next

[artillery77]

Originally Posted by Elliott_CA

Funny how conservatives think in such simple terms. Raise the minimum wage a dollar, prices have to go up a dollar. Increase a tax on a business a dollar, prices have to go up a dollar.

They have no clue how modern economics work nor the complex realities of the current marketplace. Ask them what the price elasticity of demand is or what the substitution effect is and they go "huh?" Sad really.

Most commercial leases are NNN, meaning the renter will absorb the costs and pay them. It won't even require a new lease.

[TR95]

Originally Posted by artillery77

Most commercial leases are NNN, meaning the renter will absorb the costs and pay them. It won't even require a new lease.

Yes, guess the liberals do the Bernie math nowadays. Funny, how people think the LL’s will be hurt more than the small businesses if Prop 13 were to be repealed for commercial. Elliott obviously has no idea how the real world works. But, hey he’s got the supply and demand curves down!

[alliance]

Originally Posted by artillery77

Most commercial leases are NNN, meaning the renter will absorb the costs and pay them. It won't even require a new lease.

Exactly. If (when) my CRE property tax triples, which is split between my two tenants, the businesses will be paying an additional $1000 per month. Which will be paid for by the customers of those businesses. Us evil property owners won’t be paying any of it. And for those without NNNs now, you can be damn well sure they will be transitioned over to that as soon as the lease terms (and renewal) allows for it. And many gross leases shift to market rate at the time of each option, which will instantly have this factored in across the state, forcing higher rents (and costs to customers) literally everywhere. Yet another way to force inflation and circumvent the free market, as if that still exists in California.

I am still having trouble what I’m not understanding here. Not exactly a complicated scenario to figure out.

[2sleepy]

Originally Posted by TR95

Yes, guess the liberals do the Bernie math nowadays. Funny, how people think the LL’s will be hurt more than the small businesses if Prop 13 were to be repealed for commercial. Elliott obviously has no idea how the real world works. But, hey he’s got the supply and demand curves down!

I know how the real world works, and there are very few states that don't reappraise property at times other than the transfer of ownership and adjust property tax accordingly so why do you act like this is going to be such an unbearable burden to California businesses?

https://taxfoundation.org/state-prov...-reassessment/

[alliance]

Originally Posted by 2sleepy

I know how the real world works, and there are very few states that don't reappraise property at times other than the transfer of ownership and adjust property tax accordingly so why do you act like this is going to be such an unbearable burden to California businesses?

https://taxfoundation.org/state-prov...-reassessment/

Mostly because it isn’t a slow and steady change, but an abrupt one. Similar to the dramatic MW changes. It’s harder to factor into the budget as a fixed expense when it’s over a few years or less, instead of gradual over time. Also, many businesses aren’t planning for this at all, as many small businesses aren’t even aware of it. I intend to give my tenants a warning beforehand, instead of handing them an invoice for a sudden dramatic hike in their rent, as I suspect one or both aren’t even aware you guys intend to do this to them.

But hey, **** small business and property owners. They’re all rich and have unlimited money in their bank accounts, and need to pay their fair share. Am I right?

I’ve been getting this for a long time as a former business owner (and current property owner) in SF. I was used to taking on these situations. But many outside of SF aren’t nearly as hated as they are here (I assume), and will be thrilled to have the same target on their backs as we do.

[TR95]

Originally Posted by alliance

Mostly because it isn’t a slow and steady change, but an abrupt one. Similar to the dramatic MW changes. It’s harder to factor into the budget as a fixed expense when it’s over a few years or less, instead of gradual over time. Also, many businesses aren’t planning for this at all, as many small businesses aren’t even aware of it. I intend to give my tenants a warning beforehand, instead of handing them an invoice for a sudden dramatic hike in their rent, as I suspect one or both aren’t even aware you guys intend to do this to them.

But hey, **** small business and property owners. They’re all rich and have unlimited money in their bank accounts, and need to pay their fair share. Am I right?

I’ve been getting this for a long time as a former business owner (and current property owner) in SF. I was used to taking on these situations. But many outside of SF aren’t nearly as hated as they are here (I assume), and will be thrilled to have the same target on their backs as we do.

Exactly, 2 Sleepy should just stay asleep at the switch and not intervene in financial discussions. She has no clue. I've been hit by CAM/NNN costs as a business owner and also as a LL and passed these costs on to tenants. Sorry to say, even Starbucks pays CAM/NNN costs and it is typically adjusted annually, and some businesses can cap it, but depends on the negotiation strength.

So all these taxes are supposed to help the poor and working class? Oh, ok got it. Sure the landscapers and maintenance people that now have to pay more for gas will get hit. They may be able to pass it on to property owners, but then those same CAM costs increase for small business owners, you know the "Rich and Wealthy" that Bernie likes to label. Well, thank gawd he is done. Maybe try it in another 8 years when the under 35 crowd will still want to be entitled and receive everything he proposed. Maybe, try to get Medicare over 65 working first before applying it to the whole population. What a genius. The fact that he won Ca is not surprising at all based on some of these posts here.

[CaliRestoration]

Originally Posted by 2sleepy

so why do you act like this is going to be such an unbearable burden to California businesses?

Here's something that you can look at to potentially start your journey on understanding the economic concept of "business tax burden" which is usually an aggregate of many taxes (especially in California).

[2sleepy]

Originally Posted by TR95

Exactly, 2 Sleepy should just stay asleep at the switch and not intervene in financial discussions. She has no clue. I've been hit by CAM/NNN costs as a business owner and also as a LL and passed these costs on to tenants. Sorry to say, even Starbucks pays CAM/NNN costs and it is typically adjusted annually, and some businesses can cap it, but depends on the negotiation strength.

So all these taxes are supposed to help the poor and working class? Oh, ok got it. Sure the landscapers and maintenance people that now have to pay more for gas will get hit. They may be able to pass it on to property owners, but then those same CAM costs increase for small business owners, you know the "Rich and Wealthy" that Bernie likes to label. Well, thank gawd he is done. Maybe try it in another 8 years when the under 35 crowd will still want to be entitled and receive everything he proposed. Maybe, try to get Medicare over 65 working first before applying it to the whole population. What a genius. The fact that he won Ca is not surprising at all based on some of these posts here.

lol as if you were some kind of financial genius My point was and is that commercial entities exist all over the US and most are in states where property taxes are raised periodically. That's nothing new or unusual. If anything California not increasing property tax when the value of the property increases is an outlier.

If you can't afford your rent then that's your problem and probably something you should look at rather than whine about it on public forums

[mgforshort]

The interesting consequence of the rise in property taxes, both private and commercial, plus the ongoing efforts to establish stricter rent control is that landlords get tired and decide to sell. They sell their single-family homes to the highest bidder and if they own apartments they might convert the buildings to condos. Cash in the profits and move to a nice place where the hassle of maintaining properties is quickly forgotten.

Less places to rent means higher rents for the rest. Sadly, most renters don't understand the system, they will vote for tax increases, for bonds, for rent control and when they can't find a place to live they expect the government to take care of them.