Upcoming Real Estate Related California State Propositions | Bay Area Real Estate Tip #24

Every Tuesday, I go into detail about a question I frequently get asked. This week, I'm going to discuss the upcoming California Propositions related to real estate that will be on the ballot by giving my candid thoughts, pros and cons, and whether I think they will likely pass or not. The main ones I will be covering today are Proposition 15, 19, and 21.

Proposition 15:

Increases funding sources for public schools, community colleges, and local government services by changing tax assessment of commercial and industrial property. Initiative constitutional amendment.

What it means: Taxes such properties based on current market value, instead of purchase price.

Fiscal Impact: Increased property taxes on commercial properties worth more than $3 million providing $6.5 billion to $11.5 billion in new funding to local governments and schools.

Proposition 19:

Changes certain property tax rules. Legislative constitutional amendment,

What it means: Allows homeowners who are over 55, disabled, or wildfire/disaster victims to transfer primary residence’s tax base to replacement residence. Changes taxation of family-property transfers. Establishes fire protection services fund.

Fiscal Impact: Local governments could gain tens of millions of dollars of property tax revenue per year, probably growing over time to a few hundred million dollars per year. Schools could receive similar property tax gains.

Proposition 21:

Expands local governments' authority to enact rent control on residential property. Initiative statute.

What it means: Allows local governments to establish rent control on residential properties over 15 years old. Local limits on rate increases may differ from statewide limit.

Fiscal Impact: Overall, a potential reduction in state and local revenues in the high tens of millions of dollars per year over time. Depending on actions by local communities, revenue losses could be less or more.

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My Background: Born and raised in the Bay Area, I spent 11 years as Technology Sales Manager before becoming a Realtor. Having personally invested and done renovations through house flips in the Bay Area, I wanted to help busy professionals in the Bay Area tech industry find their dream home by leveraging tech, data and local insights. Our team specializes in creating trusted frameworks of buying, selling, and investing in the Bay Area. In 2022, we are thrilled to share that we have helped 80 clients in the Bay Area with their moves, which positions our team as the Top 1% groups in the country. Looking forward to helping you into your next home and save/earn you more money!

Spencer Hsu, MBA, Realtor

Spencer@SpencerHsu.com

408-547-4590

EXP Realty DRE #02077253

https://www.homesbyspencerhsu.com/

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