May 23, 2022 Breaking News, Latest News, and Videos

Santa Monica Rent Control Board to Consider Changes to Property Tax-Related Surcharges

The Santa Monica Rent Control Board is considering changing the way that landlords pass through portions of their property tax bills to tenants as surcharges on controlled rents. Today, landlords can in most cases pass through five line items on their tax bills that relate to things Santa Monica voters approved. They include:

  • Bonds for improvements in the Santa Monica-Malibu Unified School District
  • Bonds for improvements at Santa Monica College
  • The Stormwater Management Fee
  • The Clean Beaches and Ocean Parcel Tax
  • The Santa Monica-Malibu Unified School District Parcel Tax

This conversation comes as the amounts tenants pay have been on the rise as property values and related property taxes increase, especially after a property is sold. The fundamental question is who should pay for property tax-related assessments that help fund the items above – landlords, tenants or both?

In one real-life example, in tax year 2016, a long-time owner (since 1972) of a 21-unit property paid total assessments of $1,532.32 for the five items that could be passed through. He could pass through $6.06 per unit per month in surcharges. When he sold the building in 2016, the building’s value was reassessed, increasing the five items on the 2017 tax bill to $20,104.70. With proper notice, the new owner could potentially charge $79.76 per unit per month in surcharges.

Starting March 1st, the Rent Control Board eliminated surcharge pass-throughs when a property is sold or reassessed due to elective property improvements. It also prohibited landlords from passing through the surcharges to new tenants who move in on or after March 1st.

Now, the Board is considering changes that may affect tenants who moved in before March 1st. The Board could require the owner to pay a share of the surcharges or establish a “cap” or maximum amount that can be passed through. The Board could also eliminate surcharges completely or leave things as they are. Before making a decision, the Board is interested in hearing comments from the public on the community’s preferred approach, including these ideas and others for consideration.

To those interested in commenting on the issue, visit https://www.smgov.net/Surcharge_Form.aspx?LangType=1033.

Santa Monica’s Rent Control Board as of 2018.
Related Posts

Los Angeles Metro Sees 15.9 Percent Increase in Median Rent

May 20, 2022

May 20, 2022

Median rent of $2,258, according to recent report By Dolores Quintana The ongoing pandemic has exacerbated the issues of housing...

New Renderings for Frank Gehry Hotel Development in Santa Monica

May 20, 2022

May 20, 2022

Project would include hotel, apartments, retail and a museum By Dolores Quintana Slowly but surely, plans for a  Frank Gehry-designed...

Shared Mobility Plummets in Santa Monica

May 20, 2022

May 20, 2022

Recent report also shows that nearly half of riders make over $100,000 By Sam Catanzaro Shared mobility use in Santa...

Christopher Dishlip Selected as Santa Monica’s New Assistant Director of Public Works

May 20, 2022

May 20, 2022

Public Works Director Rick Valte announced the selection of Christopher Dishlip as Santa Monica’s new Assistant Director of Public Works....

Letter to Editor: Response to Himmelrich’s “We Walk the Talk” Column

May 20, 2022

May 20, 2022

By Beau Marks As a Santa Monica resident, I am dismayed by Sue Himmelrich’s response (“We Walk the Talk,” Santa...

Motional And UberEats Launch Autonomous Deliveries In Santa Monica

May 18, 2022

May 18, 2022

There Are Plans For Expansion Into The Rest Of Los Angeles Motional, a global driverless technology leader, and Uber Technologies...

Winston Pies Opening Third Location In Santa Monica

May 18, 2022

May 18, 2022

The restaurant used to be known as ButterCrust Pies Winston Pies is staying in Santa Monica when opening their third...

Only 10 Vaquita Porpoises Survive, But The Species May Not Be Doomed

May 17, 2022

May 17, 2022

Hope remains for the porpoise species not only survive but thrive with human help. By Stuart Wolpert The vaquita porpoise,...

The American Cinematheque Brings “Bleak Week” To Santa Monica’s Aero Theatre And The Los Feliz Three Theatre

May 17, 2022

May 17, 2022

33 Films From 18 Countries In One Week. By Dolores Quintana Sometimes when things are tough and you’re feeling down,...

Man Who Murdered His Family Members Pleads Guilty To Five Other Killings

May 16, 2022

May 16, 2022

Escobar injured an additional seven other people as well.  By Dolores Quintana A man, Ramon Escobar, has pleaded guilty to...

The price of gasoline in Los Angeles County Has Experienced The Largest Increase Since February

May 16, 2022

May 16, 2022

Gasoline prices in Orange County Have Also Increased By Dolores Quintana Regular self-serve gasoline in the county of Los Angeles...

Santa Monica Travel Summit Of 2022 Returns To Take On Tomorrow

May 16, 2022

May 16, 2022

The Event Was Held At The Jonathan Club On Santa Monica Beach By Staff Writer The 2022 Santa Monica Tourism...

City Council Extends Santa Monica’s Parklet Program: Santa Monica Beat – May 16th, 2022

May 16, 2022

May 16, 2022

Local news and culture in under 5 minutes.* City Council Extends Santa Monica’s Parklet Program * Santa Monica High School Students...

1221 Ocean Avenue Complex Sold For Record Price

May 16, 2022

May 16, 2022

Sold for a record price of $330 million. By Dolores Quintana The Irvine Company has sold 1221 Ocean Avenue to...

Office Construction Is Starting To Rise In Los Angeles

May 15, 2022

May 15, 2022

Property vacancies are still affecting growth.  By Dolores Quintana In March, the Los Angeles Metropolitan area had 3.2 million square...