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Proposition 13: Difference between revisions
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This subsequently led to the passage of California Proposition 218 in 1996 ("Right to Vote on Taxes Act") that constitutionally requires voter approval for local government taxes and some nontax levies such as benefit assessments on real property and certain property-related fees and charges.
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== Reform proposals ==
A. Repeal for commercial property only<br/> (also known as "split roll" reform).
=== [http://www.evolve-ca.org/our-plan/ Evolve CA proposal]: ===
==== '''Implement this reform in a smart way'''.<br/> Some commercial properties have not been reassessed in 40 years, meaning their owners are still paying property rates based on 1970s assessments. Our proposal will gradually phase-in changes to tax rates. Upon implementation, it will take three years until non-residential, commercial property owners will be paying taxes based on their current market value. ====▼
▲Some commercial properties have not been reassessed in 40 years, meaning their owners are still paying property rates based on 1970s assessments. Our proposal will gradually phase-in changes to tax rates. Upon implementation, it will take three years until non-residential, commercial property owners will be paying taxes based on their current market value.
==== '''Establish regular reassessment of non-residential, commercial property in California.'''<br/> No other state in the country has frozen commercial property tax rates. Most states reassess commercial property every 1-5 years. ====
==== '''Provide relief for small businesses'''<br/> Small business owners will be exempt from this reform and also provided with direct tax relief through elimination of the business personal property tax. ====
▲=== Criticisms of 'split-roll' reform: ===
==== California Chamber of Commerce. ====
“Our position has always been that if you’re going to have a tax increase, it should be broad-based and universally applicable,” says CCC policy advocate Jennifer Barrera. “A split-roll tax treats residential property differently from commercial property, so it’s discriminatory.” (quoted in [Abramsky 2016]).
==== YIMBY Action: ====
"We are conflicted about that proposal because it risks incentivizing municipalities to build only commercial and not residential, to increase their tax revenue." (Laura Clark, YIMBY Action, quoted in [Reisenwitz 2017]).
=== Repeal or raise business tax, pair with low-income tax credit. ===
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