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Mobile or Single ColumnLimits On Property Tax Assessment. Seismic Retrofitting of Existing Buildings.
- Pros & Cons -
Proposition 13
Limits On Property Tax Assessment. Seismic Retrofitting of Existing Buildings.
Legislative Constitutional Amendment
The Question:
Should the California Constitution be amended to provide that all earthquake safety upgrades be exempt from property tax reassessment until the property is sold?
The Situation:
Local property taxes are based on a property’s assessed value. When property is acquired, its assessed value is generally set at the purchase price or market value. Until the property changes hands, increases in assessed value are limited to two percent per year by Prop 13 (1978). But, if additions or renovations are made, property value is reassessed to include the value added by those changes. There are two exclusions from property reassessment for earthquake safety improvements:
- Earthquake upgrades required by local ordinance on unreinforced masonry structures (made of bricks or cement blocks) are exempt for 15 years or until the property is sold.
- Other earthquake upgrades are exempt until the property is sold.
The Proposal:
Proposition 13 would amend the California Constitution to replace two earthquake safety exemptions with a single exclusion for all earthquake upgrades. This would remove the 15-year limit on the exemption for unreinforced masonry buildings.
Fiscal Effect:
Minor reduction in local property tax revenues.
A YES Vote Means:
Earthquake safety improvements for any building would not result in higher property taxes until ownership of the building changes.
A NO Vote Means:
Earthquake safety improvements made to unreinforced masonry buildings would continue to be excluded from increased property taxes for only 15 years.
Supporters Say:
- The current law is unfair, treating property owners differently according to the type of structure.
- The change will encourage owners of unreinforced masonry buildings to upgrade them for earthquake safety.
Opponents Say:
No opposing arguments were submitted.
Official Contact Information:
Supporters: Senator Roy Ashburn’s Support Proposition 13 Committee
661.861.8100
Opponents: None listed
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