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Is it time to revisit Proposition 13 loopholes

thBrookfield Office Properties, which is in the midst of a major deal to purchase four downtown L.A. skyscrapers for $2.1 billion, is drawing fire from activists seeking to amend Proposition 13. They accuse the company of using a loophole in the law to escape paying tens of millions of dollars in property taxes on the Wells Fargo Tower, KPMG Tower, Gas Co. Tower and 777 Tower.

Because no one corporate entity or individual would own more than 50 percent of DTLA, state law enacted as part of Proposition 13 requires the county to assess the properties at the pre-sale value of $1.1 billion – roughly half of the expected selling price.

Bottom line: Brookfield, one of the largest office complex owners in the U.S., could pay up to $10 million less in annual property taxes, according to ACCE.

According to the California Tax Reform Association 2010 report, “System Failure: California’s Loophole-Ridden Commercial Property Tax.”  “Commercial property is able to exploit huge loopholes in the law to avoid reassessment upon change in ownership,” the report said.

Read more at KPCC

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About Melissa

I am a lifelong Inglewood resident living in District 4. I serve on PTA and School Site Council as Vice-President, for the last 8 years with Inglewood Unified School District. I volunteer on the Wellness Committee for ICEF Public Schools. I am an alumni of California State University, Dominguez Hills with a degree in Political Science. You can find me on Twitter under @CreoleMommie

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