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>This is because Prop 13 prevents cities from collecting RISING taxes from residential properties (but they can collect rising taxes from commercial properties)
by HanayamaTriplet 4y ago
>This is because Prop 13 prevents cities from collecting RISING taxes from residential properties (but they can collect rising taxes from commercial properties)
The parenthetical here is incorrect - all property taxes, regardless if they are for residential, commercial, or industrial properties, have capped yearly increases under Prop 13. In 2020, there was a ballot initiative, Prop 15, which proposed a "split roll" to remove the Prop 13 rate caps from certain types of businesses, but it did not pass. You can read more about Prop 15 here: https://ballotpedia.org/California_Proposition_15,_Tax_on_Commercial_and_Industrial_Properties_for_Education_and_Local_Government_Funding_Initiative_(2020) https://ballotpedia.org/California_Proposition_15,_Tax_on_Co...
- MaysonL 4y agoProp 13, however, doesn’t apply to sales tax.
- Ar-Curunir 4y agoThis means that really the best way to increase income is to approve more mixed-use zoning. Hopefully we will see a push for that moving forward.
- neilparikh 4y agoAnd also payroll and gross receipts tax.