Elaine Kim, Investment Adviser, Centennial Advisers
Tomorrow, Thursday, August 11, 2022, the California state legislature will vote on SB 679, a bill that would create a dangerous law that will impact California landlords and business owners.
The bill seeks to create a “Los Angeles County Affordable Housing Solutions Agency.” The agency would appoint a 21-member governing board with the ability to vote to put any kind of tax increase on the ballot in support of affordable housing. This means tax increases on parcel taxes, taxes on gross receipts of businesses (including landlords), potential document transfer taxes, adding bond debt on the ballot, etc. The agency would be raising its own revenue via these new taxes and would decide how the money is spent on developing, building, buying, and rehabbing public housing. It would be an agency separate from government control, which means less accountability to the public. To boot, the government already has the power to do all this; politicians do not want the political liability of raising taxes.
If the bill passes in the legislature, it would go directly to the governor’s desk for approval.
This bill actively seeks to drive private owners out of business by creating distressed properties, especially the large-majority mom and pop landlords. The consequences of the eviction moratorium add additional pressure.
In addition, on the Los Angeles city ballot, there is a measure that aims to require 5000 low income units in every council district. This is a result of the relic that is Article 34 of the California Constitution. Also, Prop 19, which was dubbed “The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act,” effectively removed the transfer of property to heirs without triggering a tax reassessment beginning in 2020. The shelter no longer exists.
SB 679 is an assault on your savings, your business, and your children. The California government is already rolling in a tax surplus. No on SB 679!
It is imperative you CALL your state assemblymember TODAY and tell them:
“Please vote NO on SB 679. We do not need more taxes.”
Find your assemblymember here: assembly.ca.gov/assemblymembers
Search by address https://findyourrep.legislature.ca.gov/