News from ICSC:
Sacramento, CA: The controversial “Proposition 13” split roll property tax measure is edging closer to being on the 2020 ballot. In August proponents of the measure submitted over 850,000 signatures to the California Secretary of State’s office. The office must validate at least 585,407 of the signatures in order for the measure to qualify for the 2020 ballot.
Proponents of the ballot effort include the California Federation of Teachers, the League of Women Voters, and California Calls, a community organization. The campaign opposing this tax increase (“Stop Higher Property Taxes”) is supported by a broad-based coalition that includes ICSC, the California Chamber of Commerce, California Taxpayers Association, California Business Roundtable, Howard Jarvis Taxpayers Association, California Business Properties Association (CBPA) and a growing list of local businesses and taxpayer advocates.
Passed in 1978, Proposition 13 limited property tax increases on both residential and commercial property. The constitutional amendment limits property tax increases to no more than 2% per year, regardless of the market value. Typically an owner would only pay taxes based on the property’s real market value when ownership of the property changes.
The measure, if passed, would require immediate reassessment of all commercial, industrial and retail properties throughout California, with regular reassessments every three years. Owners would not be able to predict their property taxes and could very well face double-digit increases similar to the property tax rate increases in other states.
“California already has the worst climate for business and job creation in the country,” Rex Hime, President of CBPA, said. “A split roll property tax will just increase pressure on many businesses that are already finding it hard to make ends meet.”
Manager of State & Local Government Relations for Western Division