TAX NEWS - June 2010

California Tax: Voters block tax hikes for quake-safe buildings

LOS ANGELES — Property owners who renovate their buildings to withstand earthquakes won't have to pay property taxes on the improvements.

California voters on Tuesday approved Proposition 13 by a margin of 85 percent to 15 percent with 9 percent of precincts reporting.

The measure changes the state Constitution so that counties can no longer raise property taxes until a building is sold to a new owner.

Current law allows county assessors to increase property taxes after owners make significant upgrades or additions to their buildings. Earthquake improvements were exempt from assessments for 15 years.

Supporters say the change in the law will encourage property owners to make improvements to older, unreinforced buildings that are most prone to collapse in earthquakes.