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Monday, March 29, 2010

New Envision San Diego Report on Prop.13

Watch KPBS coverage about Prop.13, 9:00PM, Monday Night, March 29

This is not a complicated issue, there is not going to be any change in the TAX PROTECTION afforded home owners by Prop.13. It is not possible politically, homeowners vote.

However, Prop.13 affects ALL property, including second homes, investment property, and commercial property, and our state government is facing bankruptcy from underfunding. SHELL CORPORATIONS created as holding companies for commercial real-estate are responsible.

Homeowners sell their homes on average ever 5-7 years, even elderly homeowners die every 30-50 years, but CORPORATIONS NEVER DIE!

Under Prop.13, I can form a corporation, buy a property, live in that property, write off all costs of that property as "business expenses", and never have that property re-assessed for tax purposes.

When I'm tired of that property, or the property value has increased enough that I want to sell it and enjoy the equity, then I can simply sell the HOLDING CORPORATION. The property never technically changes hands, and is thus never re-assessed for tax purposes. The new owners simply keep the tax protection of Prop.13.

If I die, the corporation is passed to my heirs, without any loss of tax protection. And CORPORATIONS LIVE FOREVER.

Paying 1% on the value of Capital Investments is not extreme, it is the cost of government, the cost of schools, hospitals, libraries, roads, and other vital government services.

If your business can't afford to pay 1% property taxes, then it isn't a very good business, sell the property, and let someone else have the chance to make it work for them.

Split the Roll, stop the Property Tax Loophole for Corporations.

Watch KPBS coverage about Prop.13, 9:00PM, Monday Night, March 29

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