Prop. 15 Effort To Revise 1978 Commercial Property Tax Rules Narrowly Losing

Proposition 15 would adjust the original 1978 California Proposition 13 and allow commercial properties to get taxed at their fair market value rather than the value at the time when they were purchased.

By CBS Los Angeles , in Los Angeles , at November 4, 2020

original article published at https://losangeles.cbslocal.com/2020/11/04/election-2020-prop-15/

LOS ANGELES (CBSLA) — California’s Proposition 15 — which would allow commercial properties to get taxed at their fair market value rather than the value at the time when they were purchased — was narrowly losing early Wednesday morning.

With 71 percent of precincts reporting, voters were rejecting Prop. 15 by 51.7% to 48.3%.

If passed, Proposition 15 would adjust the original 1978 California Proposition 13 by basing property tax rates on current market value for commercial properties valued at more than $3 million, rather than using the purchase price.

The measure would generate an estimated $6.5 billion to $11.5 billion in revenue per year, with the funds earmarked for schools and local government.

Both sides have put plenty of money into campaigning for and against Prop. 15. As of June, supporters have spent over $20 million and those fighting against the proposition spent over $5 million.

With 55% of the votes reported as of 10:17 p.m. according to the Associated Press, 50.5% have voted against the proposition and 49.5% have voted for Prop. 15.

Opponents say the measure will lead to increased costs of goods provided by impacted businesses, while supporters say it will close what they call a “loophole” and provide schools with needed funding.