California Property Taxes and Covid
We’d like to take a closer look here at how The California Association of Realtors (aka, C.A.R.) and others continue to monitor and forecast the affect that the Coronavirus crisis is having specifically on the fluid 2020 California housing market – on the overall demand for middle class housing, and on the adverse affect the crisis is having on the cost and process of new home construction, fixer-uppers, and so on.
Taking into account over 42.1 million people in America now out of work, having signed up for Unemployment benefits – and 3,018,000 working people in California now jobless, as of May 2020, as official government statistics tell us – this obviously has had, and continues to have, a significant affect on estates and inheritance distribution scheduling, as well as the housing market throughout the entire state.
As we all know, or should know, the Coronavirus health crisis, and economic disaster are intertwined, and cannot be separated in order to “fix” one or the other, contrary to what certain political figures currently believe. One cannot “open” the economy and “fix” that – without first resolving the health issues, as infectious disease experts such as Dr. Fauci and others have stated repeatedly over the past four months.
The health crisis has had an an adverse affect on live viewings concerning residential properties, as well as commercial and industrial facilities and buildings that, if the deceptively simple Split-Roll Proposition 15 property tax were to pass in November 2020 and be imposed on these property owners, landlords, and even renters, we would see the effective unraveling of 1978 Proposition 13 property tax relief benefits for non residential properties and facilities.
Supposedly not affecting home owners and beneficiaries’ right to transfer parents property taxes when inheriting property taxes from parents; Supposedly not having any affect at all on Californians’ ability to keep parents California property taxes upon property tax transfer; and supposedly no obstruction of parent to child transfer or parent to child exclusion. Supposedly. And are we to believe all this, sight unseen? It’s questionable… to say the least.
If passed, and ones ability keep parents California property taxes is taken away, Californians all know that this new ill advised property tax will cause a substantial increase in rents across the board concerning both business and residential rentals – an outcome that many Californians do not yet seem to be fully aware of.
If the proposed property tax is passed, it’s a given that there will be a massively unpopular increase in prices of goods and services throughout California, strictly due to more expensive rentals imposed on businesses that are renters. Businesses that own their own property will be paying higher property taxes and so will assuredly be charging more for their goods and services.
This Proposition Split-Roll tax is bound to affect retail stores, supermarkets, and properties that house these retailers as well as restaurants, multi-tenant and single-tenant stand-alone buildings; shopping centers, strip-malls, banks, pharmacies… affecting the price of goods at popular stores such as Target, Walmart, Best Buy, movie theatres, Casinos, Resorts and Hotels… Multi-tenant and single-tenant office buildings; Medical office buildings and facilities.
And lest we forget, so critical to the California economy, agricultural and manufacturing facilities. Plus the numerous research and development facilities that are typically associated with those business categories.