The Rent Control Board will continue to tackle tax surcharges on tenants who have seen their rental rates surge when they consider whether to create a subcommittee on the issue Thursday. The RCB aims to help current tenants who’ve surcharges increase because of property tax assessments during Santa Monica’s current real estate market boom.

Last month, the RCB eliminated the issue for new tenants and future sales when they put a sunset on the law that allowed the pass-throughs to happen. A new property owner will no longer be able to pass any of the massive property tax increase down to tenants when they purchase a multi-unit building in Santa Monica. Because the decision is not retroactive, tenants currently paying surcharges will continue to do so unless they move out or the building is sold to a new owner.

There are current surcharges linked to Measures X, S, BB and AA. Landlords could also pass along a stormwater management user fee, the clean beaches and ocean parcel tax and a 2008 school district special tax. The median monthly surcharge is $20.73, however, some tenants have seen their bills skyrocket in recent years.
The RCB will decide whether to create a subcommittee to address tax-related surcharges when they meet Thursday night.

Read More: http://smdp.com/financial-focus-for-upcoming-rent-control-meeting/164550