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California
Related: About this forumProp. 13 loophole gives edge to big players (LA Times)
Prop. 13 loophole gives edge to big playersChange of ownership, key to reassessment, is cut-and-dried for homeowners but not businesses. It means a loss of tens of millions of dollars a year in tax revenue.
By Jason Felch and Jack Dolan, Los Angeles Times
May 4, 2013
In 2006, billionaire computer magnate Michael Dell, one of the world's richest men, agreed to pay $200 million for the Fairmont Miramar Hotel, a beachfront landmark in Santa Monica that long has been a retreat for Hollywood starlets and U.S. presidents.
A few months later, Dell tore up the contract.
He still wanted the hotel. But his attorneys had found a simple way to reshuffle the deal to avoid a legal change in ownership.
The maneuver saved about $1 million a year in property taxes an option available only to businesses, not homeowners, under the arcane rules governing Proposition 13.
http://www.latimes.com/news/local/la-me-dell-property-20130505,0,6993978.story
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Prop. 13 loophole gives edge to big players (LA Times) (Original Post)
pinto
May 2013
OP
Newest Reality
(12,712 posts)1. I wish I was an edge seller!
There are so many growing opportunities to sell edge to people and corporations who have the money and influence to deserve more of it, unlike the commoners.
SunSeeker
(51,574 posts)2. Prop. 13 has been a disaster for CA in so many ways. nt
Cleita
(75,480 posts)3. That's for sure. So many Californians didn't read the fine print and
assess the consequences.
KamaAina
(78,249 posts)4. On page 2: Sun rises in East.
Fortunately, there's AB 188 (Ammiano), which would close the loophole for commercial real estate.
http://www.legislature.ca.gov/cgi-bin/port-postquery?bill_number=ab_188&sess=CUR&house=B&author=ammiano
Alas, it has already gone to "suspense", the legislative equivalent of purgatory.
olddots
(10,237 posts)5. Prop 13 came on like the early Tea baggers .
All down home and simple = bullshit it was top down white collar criminals who could buy the law.
flamingdem
(39,313 posts)6. I just returned from a meeting about Dell's Miramar project
The community is pissed but the planning commission is high on development in spite of this latest news about Dell's manipulations.
PasadenaTrudy
(3,998 posts)7. I'm thankful for Prop. 13
Our parents bought our commercial/residential prop. in 1963. It has now been passed down to bro and I. We would not be able to afford the new taxes if it were reassessed!