Real Estate Proposition Election Results – November 2020
The 2020 election results in California are in, including for the 3 real estate propositions that were on the ballot this time. The results were a mixed bag.
Proposition 15: Would have increased commercial property taxes to raise revenue to fund schools and government services.
Result: FAILED. 52%-48%.
What it means: Lots of commercial properties were purchased many years ago. Under Proposition 13, the county tax assessor in each county can only raise the property tax assessment for a property a maximum of up to 2% per year – even if that property’s market value increased say 8% or more in any given year. That means that many commercial properties that have been held for a long time are under-assessed. Proposition 15 set out to change that and would have required that affected properties be reassessed according to today’s market value, which would have raised a lot of tax revenue for the state, which would have gone to fund schools and other specified government services. Result of the proposition failing: It means that property taxes for commercial properties will not be reassessed according to the property’s market value, and things will essentially remain the same. You can check out the results for Prop 15 on the California Secretary of State’s election results website.
Proposition 19: 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. Only inherited properties used as primary homes or farms would be eligible for property tax savings.
Result: PASSED. 51.1%-48.9%
What it means: This one is more involved as several laws will be changed once it is implemented in 2021. The new laws will allow homeowners who are over 55, disabled, or wildfire/disaster victims to transfer their primary residence’s tax base to their replacement residence once they move to a new home. It could also change the taxation status of a family’s transfer of property to a child or grandchild when a parent dies. Here is a good explainer from Buchalter, a local law firm, so you can better understand how the new law will affect property owners in California. You should consult with an attorney to understand the legal consequences and for your situation. You can also check out the results for Prop 19 on the California Secretary of State’s election results website.
Proposition 21: Would have expanded local governments’ authority to enact rent control on residential property.
Result: FAILED: 59.9%-40.1%
What it means: No changes to existing rent control laws. Municipalities have the same authority over rent control as before. You can check out the results for Prop 21 on the California Secretary of State’s election results website.
- All information provided for informational purposes only and taken from the CA SOS’s website. Please consult that site and others for official results, and an attorney for any legal advice.
Contact us if you have any general questions about these props or how it might affect your situation.
-Kevin & Diane
November 19, 2020