SF Gate reports that the legislature is moving toward a consensus on closing a loophole in Prop 13 that allows commercial property owners to avoid higher property taxes.
The law says that if a single purchaser buys more than 50 percent of a property, it’s a change of ownership. Some commercial property buyers structure transactions to list multiple individuals or entities and avoid the 50 percent ownership rule and higher taxes.
“There was an institutional feeling that this is untouchable and a feeling any change to Prop. 13 has to go to the ballot,” Ammiano said. “This loophole was done by the Legislature. We broke, it and we can fix it.”
The Howard Jarvis Taxpayers Association, whose namesake was the architect of Prop. 13, removed opposition to Ammiano’s bill, giving the proposal a clear shot at earning a two-thirds majority vote to pass the Legislature. READ MORE.