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ALERT Split Roll Measure – SCA 5 Introduced June 10, 2015

Today Senator Holly Mitchell (D-Los Angeles) and Senator Loni Hancock (D-Oakland) have gut-and-amended Senate Constitutional 5 into a split roll property tax measure and held a press conference with a number of public employee labor groups to announce effort.  Representatives from the business community were not let into the  press conference – even though it was held in a public room in the Capitol – however we were able to view materials that were handed out and speak with reporters who were present as they left the room.
With a two-thirds vote of the Legislature, SCA 5 would to amend the State Constitution to allow for regular reassessments of commercial and industrial property to their fair market value, starting with the 2018-19 fiscal year. However, the constitutionally mandated 1 percent tax rate would be retained, and Proposition 13 protections would continue to apply to residential rental property and agricultural property.

The measure would also provide for a five-year phase-in of regular fair market value reassessments for certain commercial and industrial property owners; and exempt from personal property taxes $500,000 of tangible personal property used for business purposes, beginning January 1, 2019.

If approved by two-thirds of the Legislature the measure would be placed on the November 2016 ballot.  The Governor’s signature is not required.  The reason they are pushing for this Legislative route – even though getting a 2/3 vote seems very unlikely – is that it would allow the unions and split-roll proponents to get on the ballot without having to spend money and time gathering signatures.
CBPA is coordinating with Californians to Stop Higher Property Taxes and allied groups such as the California Chamber, CalTax, and Howard Jarvis, to respond to this attack on Proposition 13, through news media, social media, and direct contact with legislators.
You may see stories in the paper, online, and on the radio.  Please know that we are pushing back.

Get the facts on Split Roll here