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Commercial and Industrial Property Owners Take Note: a “Split-Roll” Property Tax Initiative Effort is Underway in California

Proposition 13 — California’s long-tenured law keeping a lid on annual property tax increases — is in the cross-hairs of a new ballot initiative effort.

The initiative, titled the “California Schools and Local Communities Funding Act of 2018,” aims to amend California’s constitution to allow for increased taxes for commercial and industrial properties, as well as vacant land not intended for housing or commercial agriculture.  For those properties, instead of taxes being based on the most recent purchase price with limited (2%) annual increases, the initiative would allow for taxation based on current fair market value.

The initiative contains exemptions for small businesses, and does not apply to residential properties.  If passed, the increased tax revenues could amount to an estimated $6.5 million to $10.5 million, with most of those revenues going to schools and local governments.

Below are a few links to get you up to speed:

We will keep you posted as deadlines approach for the November 2018 ballot.

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