With AB 2492, Ammiano Closes A $3.5 Billion Commercial Property Tax Loophole
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By Dan Aiello
California Progress Report
California Progress Report
The idea of a revision to the state’s property tax law - established with passage of Proposition 13 - is not new to Sacramento. It was born, say revision proponents, with the post-Prop 13 realization that what defines a commercial property sale would not be the same as what defines a residential property sale. This legal definition created a corporate tax loophole unintended by the overwhelming number of California voters who supported the initiative.
The idea has been championed by former Senators Quentin Kopp (I-SF) and Martha Escutia (D-LA) over the course of a decade, and more recently sponsored by the California Teacher’s Association desperate to turn around the state’s lagging national ranking in per-student spending ratios. In 2010, Assembly member Tom Ammiano (D-SF) is the new standard bearer for revising the state’s property tax code – which would require voter approval – as he introduces AB 2492, a ‘homeowner-exempt’ split roll revision intended to “close the loophole” created for commercial property owners with the passage of Prop 13.
“We used to have a parity,” between residential and commercial property taxes, Assembly member Ammiano told California Progress Report. “But now, I think we need this reform.”
Ammiano contends that, while he understands that California voters still overwhelmingly supports Prop 13, he believes most voters do not realize that the legal definitions of what constitutes a property sale following passage of the initiative
