Assemblyman Tom Ammiano (D – San Francisco) has just reintroduced a split-roll property tax bill. By the way of the gut and amend process AB 2372, a bill that was going to restrict a vender or lessor of a single family residence from not charging more then $10 for the delivery of a document, has now been changed in an attempt to blow up Proposition 13. It will require a 2/3rds vote to pass and has been referred to the Assembly Revenue and Taxation Committee.
Some believe that residential property owners are unfairly burdened over commercial property owners, but data from the California State Board of Equalization confirm that businesses pay a larger share under Prop 13. The data also shows that under Prop 13 assessments have grown faster on business and non-homeowner occupied property. Since Proposition 13 was enacted the property tax revenue stream for state and local governments has been a steady reliable source without the wild volatility that other revenue sources have become.
Split-roll taxation is an unfair and subjective tax policy that punishes a particular property owner over another, and goes against one of the four principles in the mission statement of OCTax.
Check out the CalTax Policy Brief on Split Roll here.
By Carolyn Cavecche, President & CEO of Orange County Taxpayers Association