Los Angeles Property Tax Information
Commercial and industrial property owners throughout the Los Angeles area enjoy a relatively friendly property tax environment thanks to Proposition 13. However, any property that was recently sold is subject to being reassessed, and that can mean a tremendous rise in the amount of property tax that is due each year. Even more concerning are efforts by local legislators to amend Proposition 13, which could result in owners of commercial and industrial real estate being subject to skyrocketing property taxes. People who own commercial property anywhere in the greater Los Angeles area may benefit financially from working with Assessment Technologies to lower their tax liability.
Property taxes prior to Proposition 13
Prior to 1978, the property tax climate was far less favorable for business owners. The property tax rate averaged approximately three percent of market value. State law also mandated no limits on tax rate increases or charges based on the property’s assessed value. This meant that a property could be reassessed between 50 percent and 100 percent in a single year. The really bad news was that the amount of property taxes due rose accordingly.
Two-thirds of the state’s voters passed Proposition 13 on June 6, 1978. Commercial property owners felt immediate relief as assessed values were rolled back to 1976 levels. In fact, assessed values were effectively frozen at this rate for quite some time. When increases came, they were limited to no more than two percent per year. These small, predictable increases could continue until the property was sold. Then, the government reassessed the property at one percent of the sale price with the two percent annual maximum being applicable to subsequent years. This meant that property owners could easily and reliably predict how much their property taxes would be as long as they kept the real estate.
Potential Changes to Proposition 13
That may change if some state senators are able to pass amendments to Proposition 13. The amendments are aimed at changing how much large corporations and owners of major commercial properties pay in property taxes. Arguing that it could mean as much as another nine billion dollars each year for local governments, the amendments are intended to change how and when property values are assessed on commercial real estate. A two-thirds majority will be needed to pass the amendment, and key legislators involved in the bill say that if this effort fails, then they will take the proposal to voters.
The movement to amend Proposition 13 is still in its early stages. Still, it’s not too early for Los Angeles-area commercial real estate owners to think about their property tax bills. It may be that the value as assessed by the county isn’t as accurate as it could be. This means that commercial property owners could be paying thousands of dollars more in taxes than they need to.
Property Tax Help in Los Angeles
Assessment Technologies specializes in helping commercial real estate owners in the Los Angeles area determine how much their property is really worth. Even better, they take steps to ensure that property owners don’t pay even one dollar more in taxes than they should. If you need someone to review your property’s assessed value or protest your property tax bill, then Assessment Technologies can help.