Rent Control Board To Host Public Hearing On Surcharges

SANTA MONICA, CA – Who should pay tax-based surcharges on rent-controlled apartment buildings in Santa Monica? Renters, property owners and other stakeholders will have the chance to argue their points at a hearing hosted by the Rent Control Board Thursday. The board will likely move staff to come back with a proposed regulation in April, Santa Monica Daily Press reported.

The hearing is specifically seeking to hear public opinion on solutions to an unintended Proposition 13 consequence: large tax increases on renters when Santa Monica's multi-million dollar real estate changes hands, according to the newspaper. Santa Monica is one of the few rent control jurisdictions that allow building owners to pass through voter-approved taxes. Renters currently pay surcharges on Measures X, S, BB, and AA, according to the Daily Press. Landlords also have the option to pass along a stormwater management user fee, the clean beaches and ocean parcel tax and a 2008 school district special tax, the newspaper reported.

The median combined surcharge amount for renters is $24.41, although this amount can widely vary from unit to unit based on the assessed value of the property; the highest monthly surcharge paid by a tenant is $137.03, according to the Santa Monica Daily Press.

Read more at the Santa Monica Daily Press; Image via Patch staffer Ashley Ludwig