Is Commercial Real Estate About to See an End to Its Beloved Prop 13?

The California Schools and Local Communities Act of 2020, recently designated "Proposition 15", is an initiative constitutional amendment appearing on the November 3, 2020 statewide ballot.  If passed, most commercial real estate in California will lose the decades-old tax protections of Prop 13 and owners and businesses will see a collective tax increase on the order of $11 billion.

Prop 15 would split the property tax roll into 2 parts -- one still under Prop 13's acquisition value-based system, one under a new market value-based system -- and is colloquially referred to as the "split roll".  The split roll would change the face of commercial real estate in California by replacing the certainty of the current system with uncertainty, complexity and a lot more taxation.

Follow the path to Election Day right here, with Capital Rivers Commercial.

Old town Sacramento California wood walkways

Prop 15 Impact Assessment: Expert Panel Event

At the Historic Sutter Club, one a block from the State Capitol at 1220 9th Street in Sacramento, our expert panel consisting of Larry Stone (Santa Clara County Assessor), Rachel Michelin (President, California Retailers Association) and Rex Hime (President, California Business Properties Association) will weigh in on Prop 15.  Moderated by Will Swaim (President, California Policy Center) and with an introduction by special guests Radio’s Jack Armstrong & Joe Getty, Capital Rivers is proud to host this frank discussion on the split tax roll with these distinguished experts from government and industry. This is truly an event not to be missed.

***EVENT RESCHEDULED DUE TO STATE ORDER ISSUED JULY 13***

***CHECK BACK SOON FOR NEW DATE***

state capitol

Propositon 15: White Paper

Capital Rivers is pleased to present our detailed analysis of the California Schools and Local Communities Act of 2020 (aka, Prop 15), available as a complementary download. This White Paper will help you better understand what the "Split Roll" would mean for California commercial real estate.

A Big Property Tax Change May Be On Its Way

The California Schools and Local Community Funding Act Appears on the November 2020 Ballot.

Why November Could Mean the End of Prop 13

Nov. 3, 2020 is a day that may live in infamy, at least for California commercial property owners and their tenants.

Ballotpedia on Prop 15

Ballotpedia is a general public resource a la Wikipedia, and presents a helpful compendium of resources on Prop 15, including campaign contribution info.  See their Prop 15 page, here.

Text of Proposition 15

At present, the actual text of "The California Schools and Local Communities Act of 2020", aka Prop 15, has only been published in the format in which it was submitted to the Initiative Coordinator of the State Attorney General's Office.  The submission is available here.

California Constitution

Prop 15 would amend the California Constitution, so fully understanding Prop 15 requires reference to the State Constitution.  View it here, on the California Legislative Information website.

International Council of Shopping Centers (ICSC) resource page

The nation's leading shopping center trade organization, ICSC, is naturally an outspoken opponent of Prop 15.  ICSC maintains an excellent collection of publicly-available resources on its website, available here.

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