CHANGE OF OWNERSHIP EARNS BIPARTISAN VOTE

Senator Patricia Bates (R-Laguna Niguel) bill to address the “change of ownership” issue passed the Senate Governance and Finance Committee on a 6-0 vote.  Senate Bill 259 would correct an outdated interpretation of property change of ownership that has been the long running debate around commercial property and Proposition 13.  Business and taxpayer groups (including commercial real estate groups) were joined by the League of Cities in supporting the measure.

SB 259 would alter the definition of “change of ownership” in the California Revenue and Tax Code for determining the property tax base value of commercial property. Current law allows for a property to be reassessed if a majority of the ownership interest changes hands. SB 259 would require any property to be reassessed if 90 percent of the ownership interest changes hands within any three-year period.
Rex Hime, President & CEO of the California Business Properties Association stated, “The commercial real estate industry applauds the bi-partisan effort to fix this change of ownership issue. Our industry has sought for years to correct abuses in the system and this bill closes down the issue that we have heard so much about.”
SB 259 now goes to the Senate Appropriations Committee for its consideration. It requires a two-thirds vote of both houses of the Legislature and Governor Brown’s approval to become law.

Although this bill is the same as the “deal” worked out several years ago with then Assemblymember Tom Ammiano (D-San Francisco) sought to address this issue, long time split roll proponent Lenny Golberg opposed the bill in committee.  However, the various political and public employee unions that want to see split roll tax enacted in California have begun coalescing in opposition to the bill.

Here is a Sacramento Bee article about the issue.

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