Legal Question in Real Estate Law in California

NO. That would be as unconstitutional a a governmental intrusion and invasion of private property rights as any other scheme of rent control. By the way, all such rent control schemes destroy the rental market profit, and lead inevitably to either building abandonment and slums, and/or massive tenant rent fraud, wherever they are imposed. My two cents.

So if an apartment building was valued at $1,000,000.00 you think rent per month should be $10,000.00 for a unit in that building? This is not a legal question, you are just frightening everyone with your math and conceptual skills.

Your example (as stated in your question) produces an excessive rent. 1% a month would be a dreamworld figure for landlords. However, as to the legality of some such taxation scheme -- which is a separate question from the actual rate or the likelihood of enacting it or the effect it would have on the supply of rentals -- I can't say that it would be unconstitutional for sure.

It is unconstitutional to prevent landlords from charging market rents on vacant units, or to prevent them from getting fair return on their investments. Even the tightest rent control laws in the state, in Berkeley, San Francisco, and LA, all allow market rents on vacant units. To do otherwise violates the takings clause of the U.S. and State constitutions.