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News & Press: Industry News

Proposition 13 Threatened by Ballot Initiative

Tuesday, August 21, 2018  
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A non-profit group, Housing California, announced that it’s turned in signatures for a ballot initiative to change California’s property tax law to permit higher property taxes on commercial and industrial properties. Differing assessment for homes versus other properties is referred to as the “split-roll.” The group submitted more than 850,000 signatures to meet the requirement of 585,407 valid signatures necessary to put the initiative on the 2020 ballot. The initiative would appear on the ballot at the same time as the 2020 Presidential election, though the California Secretary of State is required to verify the results before the initiative can officially qualify for the ballot.

The initiative is the result of a concerted effort to roll back Proposition 13, a 1978 voter-passed initiative. Proposition 13 limited property tax increases and applied equally to both homes and commercial property. Opponents are concerned about the initiative’s impact on California’s business climate and job creation both in the run-up to the vote on the measure and, if it were to be approved, subsequent to its passage. Supporters see the added tax revenues as a fair way to assess corporate property that doesn’t change ownership as often as homes, as well as a boon for school finance and cash-strapped local government.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851