Proposed LA Skyscraper Deal Raises Ire of Prop 13 Activists

As I have written about before, proposition 13 opponents are now closely following and publicizing any major commercial property purchases where the buyers utilize specific “loopholes” to save in property taxes.  In the past, it was Dell computer’s, Michael Dell, who was publically attacked and accused of gaming the system. 

 

Now, it is Brookfield Office Properties which is buying four downtown LA skyscrapers for a purchase price of $2.1B.  Activists allege that Brookfield is exploiting a loophole in proposition 13 that will allow them to buy the four buildings without triggering a property tax reassessment—a maneuver which could save them approximately $10M a year in property taxes. 

 

I discuss the specifics of this technique here.

 

I also recommend a potential solution to this alleged “loophole” here.