The 36-year-old Proposition 13
that caps property taxes on business and residential property may be seeing a minor change this session. AB 2372
includes a minor change to Prop. 13 that would rectify some of the inequities by at least closing one loophole that allows businesses to avoid even the reassessment on sales provisions of Prop. 13. It's not the full answer, but at least it's a step in the right direction.
Prop. 13 has been allowing business property owners – including major American corporations – to duck a fair share of providing California with the roads, infrastructure and schools all Californians deserve.
Prop. 13 provides that taxes rise on properties after they are sold. While residential properties tend to sell every seven years or sooner, business "properties" aren't sold often. Thus, many haven't been reappraised with tax adjustments for generations. The result? Homeowners and apartment renters are paying a disproportionate share of the costs of running the state.
Read more about the issue in The Sacramento Bee