Page 11 - AAGLA-APR 2022

Board President’s Message
BOARD PRESIDENT’S MESSAGE
Proposed Ballot Measures that Would Affect Property Rights and Taxation
SBy Cheryl Turner, President of the Board of Directors
o far, of the ballot measures I had addressed in the February issue of Apartment Age, at least one of these harmful measures entitled “Local Land Use and Zoning Laws Override Conflicting State Laws Initiative Constitutional Amendment” that has, so far, failed to qualify for the November ballot. If you will recall, this particular ballot initiative would have allowed local governments to override state land use and zoning laws.
Although many who are not informed would prefer to have their local city or county governments have a say in zoning and land use issues, the Apartment Association of Greater Los Angeles was particularly concerned that this measure could have potentially lead to local jurisdictions overturning existing statewide protections such the Costa-Hawkins Rental Housing Act and the Ellis Act in those local areas.
We are still watching to see if the other proposed measures that would affect property rights, and property and income taxation, are able to obtain the required number of signatures to qualify for the November 2022 ballot. These other proposed ballot initiatives include the following:
INCREASES HOMEOWNERS’ REAL PROPERTY TAX
EXEMPTION AND PROVIDES FOR SUPPLEMENTAL RENTERS’ TAX CREDIT. INCREASES TAXES ON HIGH-VALUE PROPERTIES. AND LIMITS LOCAL RESTRICTIONS ON HOUSING DEVELOPMENT. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.
If passed, would increase the portion of a homeowner’s property value that is exempt or homesteaded from property tax, from $7,000 currently to $200,000 (adjusted for inflation) and it provides up to $2,000 supplemental income tax credit for
renters (adjusted for inflation) ($4,000 for married filing jointly). While this is a wonderful bill if you only own your own home with an assessed value of less than $4 million or you are a renter, in order to reimburse the government for its lost revenue from these tax changes, a property tax surcharge of 1.2% to 1.4% would be imposed on properties with an assessed value of more than $4 million.
ELIMINATES PROPERTY TAX REASSESSMENT FOR CERTAIN FAMILY REAL PROPERTY TRANSFERS. INITIATIVE CONSTITUTIONAL AMENDMENT.
Seeks to exempt from property tax reassessment transfers of primary residences between parents and children, and grandparents to grandchildren if both of their parents are deceased, regardless of value and removes the cap set in 2020 by Proposition 19. It also exempts transfers between same family members of other real property valued up to $2.4 million including second homes, and investment properties. This measure was proposed by and is being supported by the Howard Jarvis Taxpayers’ Association.
LIMITS STATE AND LOCAL GOVERNMENTS’ ABILITY TO RAISE REVENUES FOR GOVERNMENT SERVICES. INITIATIVE CONSTITUTIONAL AMENDMENT.
For new state taxes, voter approval is required along with the current requirement that Legislature approve by a two-thirds vote for any taxes it proposes. For new local taxes, local governing body must approve by two-thirds for any taxes it proposes, and voters’ approval must occur in a general election. The legislature or local governing body is required to approve all other fees by a two-thirds vote.
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Joseph E. Fitzsimons William T. Dawson
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APARTMENT AGE • APRIL 2022 11