Initiative to Repeal Parts of Iconic Prop 13 Qualifies for November Ballot
An initiative that would result in higher property taxes for commercial and industrial property to provide additional funding for local governments, schools and community colleges has qualified for the November ballot. This initiative would allow for annual, unlimited reassessment of commercial and industrial properties to their fair market values.
Under terms of Proposition 13, the landmark property tax reduction and limitation measure approved by voters in June 1978, increases of assessed value of real property are restricted to 2% per year except if the property is sold or there is construction.
The initiative would not change Proposition 13’s tax limit of 1% of the property’s full cash value. The initiative would result in a net increase in annual property tax revenues of $7.5 billion to $12 billion in most years, depending on the strength of real estate markets.
After backfilling state income tax losses related to the measure and paying for county administrative costs, 40% of the remaining $6.5 billion to $11.5 billion would be allocated to kindergarten through 12th grade schools and communities, with the remaining 60% going to other local governments.
Under terms of Proposition 13, the landmark property tax reduction and limitation measure approved by voters in June 1978, increases of assessed value of real property are restricted to 2% per year except if the property is sold or there is construction.
The initiative would not change Proposition 13’s tax limit of 1% of the property’s full cash value. The initiative would result in a net increase in annual property tax revenues of $7.5 billion to $12 billion in most years, depending on the strength of real estate markets.
After backfilling state income tax losses related to the measure and paying for county administrative costs, 40% of the remaining $6.5 billion to $11.5 billion would be allocated to kindergarten through 12th grade schools and communities, with the remaining 60% going to other local governments.