Wednesday, December 9, 2009

Pillsbury > Resources > Publications & Presentations > Advisory—Draft California Ballot Measures Would Cut Prop 13 Protection for Commercial Properties


Pillsbury > Resources > Publications & Presentations > Advisory—Draft California Ballot Measures Would Cut Prop 13 Protection for Commercial Properties:

"Advisory—Draft California Ballot Measures Would Cut Prop 13 Protection for Commercial Properties

Authors: Craig A. Becker, Lawrence L. Hoenig

12/3/2009

On November 5, 2009, two ballot initiatives to remove certain Proposition 13 property tax protections for California commercial property were filed with the state’s Attorney General.

The first initiative, titled the “Protect the Homeowners and Close Corporate Tax Loopholes Act” (No. 09-0077, hereinafter the “Reassessment Initiative”), would remove the Proposition 13 limits on assessed value of commercial real property and subject such property to reassessment at fair market value at least once every three years.
The second initiative, titled the “Education and Taxpayer Fairness Act” (No. 09-0078, hereinafter the “Rate Initiative”), would raise the property tax rate on commercial real property by 55% (from 1% to 1.55%) and reserve the incremental property tax revenue for California public schools.

Neither initiative would change any of the existing Proposition 13 protections for residential real property."