Prop. 13 loophole gives edge to big players (LA Times)

[pinto]

Prop. 13 loophole gives edge to big players

Change 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

[Newest Reality]

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]

2. Prop. 13 has been a disaster for CA in so many ways. nt

[Cleita]

3. That's for sure. So many Californians didn't read the fine print and

assess the consequences.

[KamaAina]

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]

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]

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]

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!