Senator Holly Mitchell (D-Los Angeles) and Senator Loni Hancock (D-Oakland) have gut-and-amended Senate Constitutional 5 into a split roll property tax measure.

With a two-thirds vote of the Legislature, SCA 5 would  amend the State Constitution to allow for regular reassessments of commercial and industrial property, starting with the 2018-19 fiscal year. However, the constitutionally mandated 1 percent tax rate would be retained, and Proposition 13 protections would continue to apply to residential rental property and agricultural property.

The measure would also provide for a five-year phase-in of regular fair market value reassessments for certain commercial and industrial property owners; and exempt from personal property taxes $500,000 of tangible personal property used for business purposes, beginning January 1, 2019.

In other words, SCA 5 removes Proposition 13 protections from commercial properties raising taxes by $9 Billion.  Yes, you read that right; proponents of this measure are pushing for a nine billion dollar tax increase.

Click here for the text of the split roll property tax measure SCA 5 (Mitchell & Hancock).

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)