Comments on: NUMMI News

By: Bystander

Bystander — Sat, 02 Oct 2010 19:59:34 +0000

Transfers of majority ownership in the holding company triggers the Prop 13 reassessment tax, FYI. States are highly incompetent, but not entirely stupid.

By: RescueBlues

RescueBlues — Thu, 15 Jul 2010 00:32:27 +0000

I doubt the city or state will see a change in the assessed value so your statement is correct. Of course the assessment for the property as held by the owner-of-record (GM, NUMMI, Toyota, a holding company, etc. ??) could go back a long way (base-year potentially back to 1975, 1% tax limit, only 2% increases/yr). I have no info on the owner or assessment on the NUMMI land but am assuming that the current “owners” (Toyota, Tesla, ??) would have done whatever they could to pay as little as possible in taxes before inking the deal.

By: Marty

Marty — Wed, 14 Jul 2010 18:36:51 +0000

Thanks for the clarification. I’d say that the price Tesla paid is less relevant than the actual assessment from when Toyota was the owner of the holding company. Do I have that correct?

By: RescueBlues

RescueBlues — Wed, 14 Jul 2010 16:40:13 +0000

(Re: #1 Marty): The usual way commercial properties get around that is by having a commercial entity (holding company) own the land. The owner of the land doesn’t change, just who owns the holding company. Or alternately the new “user of the land” just leases it from the holding company. It’s one of the complaints some people have about Prop-13 — homeowners eventually die or move, but these commercial real estate holding companies can live forever.

By: skumar

skumar — Wed, 14 Jul 2010 15:11:43 +0000

The northern NUMMI parcel is were Diaz and Wasserman proposed to build the A’s stadium. Hopefully these two have dropped the plan and are no longer wasting taxpayer resources on such folly.

By: Marty

Marty — Wed, 14 Jul 2010 03:27:35 +0000

I’m not sure if commercial RE follows Prop 13 for residential, but the fact that the plant changed ownership invokes a reassessment event to current market value, which if what you say is true (current value of $1 billion), then F-mont should be a’ight.