Property owners in California can breath a sigh of relief, at least for the moment, as many of the measures on the ballot this year failed to pass. Prop 13, which has successfully held down property taxes, was on the chopping block again. This year, voters rejected a proposition (15) that attempted to require commercial and industrial properties to be taxed based on market value. Combined with Proposition 21, which would have expanded local governments’ power to use rent control could have been detrimental to rental real estate.
One proposition that did pass (19), requires that inherited homes that are not used as principal residences, such as second homes or rentals, be reassessed at market value when transferred. This will impact many estate plans and likely cause heirs to move equity out of California.
Passco will be joining South Coast to discuss the long term tax trends that rental real estate owners should be following. We will discuss the long term prospect of owning real estate in California versus other areas of the country that are more tax friendly. Lunch will be provided and delivered to your home or office prior to the meeting. Register below to access the Zoom link.