Split Roll Property Tax Set to Be Reviewed by California Legislature
The announcement by the CAA (California Apartment Association) that a new budget has been signed by Governor Brown comes as little surprise to those who have been following the story as its developed. Governor Brown vetoed an earlier version of the budget passed by the Legislature, saying among other things, the budget relied on borrowing billions of dollars and questionable legal maneuvering. For months, Brown has sought new revenue by attempting to extend a series of temporary taxes that are set to expire on July 1st. However, he was unable to find the two Republican votes in each house necessary to put the taxes on the ballot. Weighing in on the planned changes, Robert Burba of the Real Estate Investment Firm Pertria expressed concerns that despite the implementation of the new bill, California’s fiscal future remains far from certain. He predicts that despite the signing of the bill, the deficit will rear its ugly head next year and send legislators back to the drawing board to renegotiate terms. One serious issue is that by reassessing residential rental property on an annual basis, a split roll system could cost California rental housing providers billions in new taxes.