IMAGE OF CALIFORNIA SPLITTING (EARTH-QUAKE)
HAVE RESIDENTIAL PICTURE ON ONE SIDE – AND COMMERCIAL FALLING INTO AN ABYSS AS THEIR PROPERTY TAX PROTECTION GOES AWAY
CALIFORNIA’S “SPLIT ROLL TAX” COULD HAVE AN EARTH SHATTERING IMPACT ON YOUR CASH FLOW AND VALUATION!!!
For decades California commercial and residential property owners have been protected from a fair market value property assessment due to the passage of Proposition 13 in 1978.
On this year’s state ballot there may be a “Split Roll” Tax proposal to revoke Proposition 13 protection for commercial properties. If legislation passes, tax bills will increase substantially as the value of your property is brought to its current market value for property tax valuation purposes.
For many property owners the impact will be drastic. The increase in the property taxes paid by landlords and/or tenants will have a direct and negative impact on the property’s income and subsequent valuation.
As a property owner it will be imperative that steps are taken to mitigate the impact on cash flow and valuations in order to maintain tenancy and profitability. The county assessor’s in California have become very aggressive when valuing a property. Some county’s have even used current “Fair Market Value” rent even if the property has a long-term below market lease.
In a competitive market, securing lower property taxes can be the difference between a signed lease or a “For Lease” sign on your building.
Centergy Tax has over three decades of experience negotiating real estate transactions and valuations in California. Our hands on experience allow us to look at your property from a different perspective. We use our unique insight, skill set, and relationships to ascertain market rents and values to deliver advantageous and supportable valuations with the county assessors.
Assessors and appraisers call us when they need market information. CALL TODAY so we can help YOU prepare and prevail.