🚀 go-pugleaf

Steven M. Scharf (scharf@jedi.nsc.com) wrote:
: Yesterday the creditors that dropped the bond rating put the fiscal mess
: squarely on proposition 13. The reason is obvious. While in most states
: the property tax revenue rose as property values rose, this did not
: happen in CA.

An article in today's SF Examiner confirms exactly what you say.  The bond
raters in New York say that Prop 13 is ruining California's credit rating. 
Stands to reason.  The corporations which normally would pay their fair
share on their buildings are locked into low property taxes.  There was a
big squawk when Bank of America was involved in a leveraging arrangement. 
There was a question as to whether B of A's property had changed hands
when their buildings were spun off into a separate company.  B of A has a 
HUGE amount of property, something on the order of 3,000 separate 
properties just in California alone.  I believe the court ruled it was 
not sold and therefore would NOT be reassessed at market rates.  So, B of 
A, like any other company which has held onto property is paying about 
1/10th the property taxes they should be.  

And in addition, local governments give tax credits on TOP of this?  No 
wonder California is broke.

--
dk@crl.com      	National Car Rentals now includes domestic
San Francisco		partners in rental agreements at no extra cost!