Tuesday, March 24, 2009

Early Warning on Governor's Race Issue

An amendment to Proposition 13 allowing for 'split rolls'. It is an idea that has been bandied about by certain people who are entertaining a run for the governor's office in 2010.

Basically, the idea is to allow a larger annual increase in property taxes for commercial properties and keeping residential restrictions in place. This may sound fine for some. Let the commercial market bear the brunt of any potential tax increase. What this is, however, is a job killer. Most landlords here already have figured out that it is smarter to structure your leases so that the property tax burden is shifted to the tenants. If taxes are allowed to increase annually this just passes the burden on to the business owner. If they cannot pass that on through price increases then it affects their ability to operate. California already has enough legislation on the books that makes it difficult for businesses to thrive. Don't do something that will make more businesses decide to consider Texas, Nevada or other tax friendly locations.

Just an early warning. I doubt it will gain any traction but if it does we will let you know.

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