Sunday, January 23, 2011

On That California Budget Problem

Split Roll Property Tax - It's time to close a big tax loophole for businesses - Los Angeles Times

Goldberg calculates that Disneyland, which hasn't had a reportable change of ownership since, well, forever, is currently taxed at an average of about a nickel per square foot. For comparison, a median California home bought last year out of foreclosure, measuring 1,600 square feet and selling for about $330,000 (these are averages from the California Assn. of Realtors), would incur property tax of about $3,300 per year, or $2.06 per square foot.
It is nonsensical for Prop 13 to apply to commercial real estate. Write up a small business exemption if you have to (just to shut up the loonies) but this is craziness.

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