Proposition 13, passed in 1978, has not only deprived California of billions of dollars of revenue for schools, public safety, infrastructure, and a host of other necessities but also shifted the burden of property tax from commercial owners to homeowners.
Before Prop 13, each group paid about half of the total. Now homeowners pay about two-thirds and businesses about one-third.
Why? Because (1) property is reassessed only when it is sold, and homes change hands more often than commercial property, and (2) corporations got "change of ownership" defined to mean that one buyer takes at least 50% ownership, and big business has deliberately structured sales to go to subsidiaries and divisions so that no one entity owns 50%. That means they keep the old assessment, even though the sale price is enormously higher.
Want to change this loophole and re-fund state services?
Sign my petition at http://signon.org/sign/fix-
I'm asking the legislature to put an amendment on the ballot stating that commercial property shall be reassessed periodically.
We, the people, don't have $4 million to mount an initiative petition, but the legislature can put an amendment on the ballot with a two-thirds majority in each house, which the Democrats will have this year (once vacancies are filled--unless the Dems blow the special elections). We need to pressure them to act.
If we fix this loophole, state revenue may increase by $4 billion to $12 billion a year.
Homeowners' property taxes will not be raised by this reform.
Please sign the petition at http://signon.org/sign/fix-
And spread the word to your friends and contacts who would want to sign, too. Thank you!