While discussion about amending Proposition 13 to reassess commercial property has heated up, especially with the introduction of SCA 5 by Senators Mitchell and Hancock, a different property tax increase measure was filed with the Attorney General’s office. “Lifting Children and Families Out of Poverty Act” is a 47-page detailed, complex plan to fund specific programs that are hoped to achieve the measure’s goal expressed in the title. Major funding for the plan is a surcharge on real property valued at over $3 million on the current tax roll.
The measure doesn’t make a distinction between commercial property and residential property. Once again there is proof that those looking for property tax increases have residential properties in their sites.
The measure would set up a number of segregated funds to achieve its goals.
Beginning in 2017-18 the measure proposes a .3% surcharge on assessed value between $3 million and $5 million; on property valued between $5 and $10 million the charge will be .6%; over $10 million the charge is scheduled at .8%. For some properties then, the base property tax will nearly double.
The surcharge is supposed to expire in 20 years. Where have we heard about temporary taxes before?
One of the authors of the measure is former Board of Equalization member Conway Collis.
How this tax increase proposal would affect other tax initiatives being discussed for next year’s ballot will surely be debated in different conferences rooms around Sacramento.
You can dive into the 47-page document here.