Split Roll Tax on California’s November Ballot Has Potential to Significantly Reshape Local Real Estate
Proposition 15 has the potential to be the largest commercial real estate tax increase in state history as properties are reassessed every three years rather than at point of purchase. Current law limits property tax to 1 percent of assessed value in 1976 and increases can be no greater than 2 percent each year.
Key Features Include:
- Tax could double for properties owned for 20 years
- Apartments and other residential properties excluded from the initiative
- Between $8 billion and $12.5 billion could be raised