As we reported last week a bill that would implement a de facto split roll parcel tax passed its first legislative test and is moving forward in the Legislature. We are a key part of a large coalition of groups fighting this bad idea. A piece over at calwatchdog.com has some more detail and color about the bill:
“Chartered property appraiser Charles Warren of Pleasant Hill told CalWatchdog.com that a split-roll parcel tax could end up encouraging property demolition for marginal properties. He asked, ‘How much property value will be raised if a lot of buildings gets bulldozed? Or will it be a land tax? If a land tax, it will encourage higher density development that could be blocked by growth controls in local communities.’”
“Thus, small commercial building owners could be hit by a school parcel tax with no way to develop their properties to a higher use to offset the higher taxation. Warren warned, ‘Given 5 percent capitalization rates, for every $1 per square foot of tax a property would take a $20 per square foot hit on property value.’”
Click here to read the full article.
