Assembly panel considers
Prop. 13 business change
Decades of political wrangling over how Proposition 13, the iconic property tax limit passed by voters in 1978, is applied to commercial property reached a climax of sorts Tuesday at the Capitol.
During a hearing of the Assembly Revenue and Taxation Committee, long-warring business groups and tax reformers agreed on a modest change of law governing the reassessment of commercial property when it changes hands. The committee passed the bill.
The compromise, written into Assembly Bill 2372, would trigger reassessment when at least 90 percent of a property’s ownership changes in any three-year period. It would not apply, however, to incremental changes of ownership through stock market trades.
The deal falls well short of a full “split roll,” which would completely remove Proposition 13’s limits from business property, long a goal of liberal groups.
A full split roll would have, it’s believed, a multibillion-dollar impact on state and local budgets, while the change that surfaced Tuesday would have much a smaller impact on both tax bills and government revenue.
– Dan Walters
“My top priority is to keep my wife happy.”
GOV. JERRY BROWN, deflecting a reporter’s question about his top budget priority.