In California, Schools & Communities First announced that it would file a new version of an initiative to require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value. Currently, Proposition 13 (1978) requires the taxable value of residential, commercial, and industrial properties to be based on the property’s purchase price, with an annual adjustment equal to the rate of inflation or 2 percent, whichever is lower. The change was estimated to provide $6.5 billion to $10.5 billion in additional revenue. Both the version of the initiative that has already qualified for the 2020 ballot and the refiled version would allocate revenue from the increased commercial and industrial property taxes to local community college and school districts and to local governments.
In response to the new initiative, California Business Roundtable President Rob Lapsley said, “This is just another, equally flawed measure aimed at dismantling Proposition 13. Proponents should at least withdraw their existing measure, which they now acknowledge is fatally flawed. However, there are no tweaks or amendments that can be made to this split roll measure that will prevent it from being a major, multi-billion-dollar tax on all Californians in the form of higher prices on everything we buy – from groceries and gasoline to diapers and day care.” Lapsley is the co-chair of Californians to Stop Higher Property Taxes, the committee registered to oppose the qualified initiative.View Article