• Established in 1972 · CBPA has over four decades of service to the commercial industrial retail real estate industry
  • CHANGE OF OWNERSHIP BILL INTRODUCED

    Posted: July 22, 2015 | Posted by CBPA | No Comments

    SB 259 (Bates), a bill similar to an effort supported by industry last year to address egregious has been introduced by Senator Pat Bates (R-Laguna Niguel) and seeks to modernize the “change of ownership” definition under Proposition 13.

    Last year, CBPA along with the CalChamber and several other business groups, worked with the Chair of the Assembly Revenue & Taxation Committee Raul Bocanegra (D-Pacoima) to negotiate a potentially historic agreement to fix this issue, which anti-Prop 13 advocates have railed about for years.

    Over the years, some complicated property purchase deals have been used by anti-Prop 13 advocates as “examples” of skirting Proposition 13’s change of ownership rules, whether they were doing that or not. These “examples” have then become cause celebre and used as a weapon to galvanize anti-Prop. 13 grassroots groups, and coupled with the sophistry of claiming revenue declines, to undermine the law as a whole.  The agreement was meant to update some of the laws implementing statutes to address the specific issues that some transactions have been designed to “game” the system.

    As an organization, we have always staunchly defended Proposition 13 and will continue to do so.  However, part of an effective defense of the law recognizes that some of the original implementation language may need to be updated to assure the goals of Prop. 13 are being met.  We believe this is one of those cases.

    CBPA has worked very closely with tax lawyers from many of our member companies to make sure that the language is addressing the area we are trying to fix and not bleeding over to other parts of the law.  We are also closely coordinating with other business groups in Sacramento to make sure your interests – and the legitimate protections that Prop. 13 was meant to provide – are protected.

    Click here to read the language of SB 259 (Bates).

     



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