Proposition Cheat Sheet

The 2020 Election is one week away! California has thirteen statewide ballot propositions on the ballot this year and three of these propositions are directly related to real estate. We wanted to help our community understand them a bit better with a proposition cheat sheet!

Proposition 15 - Tax On Commercial and Industrial Properties for Education & Local Government Funding Initiative

Subject: Taxes

• Requires commercial and industrial properties (other than those zoned for commercial agriculture) to be taxed based on their market value, rather than their purchase price

• Properties whose occupants are 50% or more small businesses would then be taxed based on market value beginning in the fiscal year ‘25-26

Proposition 19 - Property Tax Transfers, Exemptions, and Revenue for Wildfire Agencies and Counties Amendments

Subject: Taxes

• Allows homeowners who are over 55, disabled, or wildfire/disaster victims to transfer their primary residence’s property tax base value to a replacement residence of any value, anywhere in the state of California

• Limits tax benefits for certain transfers of real property between family members

• Expands tax benefits of family farms

• Allocates most resulting state revenues and savings (if any) to fire protection for the state

Proposition 21 - Local Rent Control Initiative

Subject: Housing

• Replace current rent control Costa-Hawkins Rental Act passed in 1955

• New buildings would be exempt from rent control for 15 years

• Houses and condos would be exempt only if the owner is an individual that owns 1 or 2 homes

• Vacancy control would be limited, owners would only be allowed a 15% rent increase when the original tenant moves out (up to once every 3 years)