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1972 – Over 45 years of service to the commercial industrial retail real estate industry – 2018.

PROP 13 REFORM REJECTED BY LEGISLATURE AND SPLIT ROLL PROPONENTS

May 18, 2018

“The defeat of SB 1237 is another sad example of politics over policy – a roadblock to providing local government with resources to meet their many needs,” stated Res Hime, President and CEO of California Business Properties Association when the bill that would have “fixed” an issue  pointed to by proponents of split roll property tax as the reason the Prop. 13 needs to be repealed.

According to the author Senate Republican Leader Patricia Bates (R-Laguna Niguel), SB 1237 would revise the definition of “change of ownership” in the Revenue and Tax Code for purposes of determining the property tax base value of commercial property. The bill is designed to prevent a repeat like the 2006 purchase of a hotel in Santa Monica where the purchaser realized he could structure the transaction without any one entity owning a 50 percent majority share in the property as defined currently under “change of ownership.”

Even though 100 percent of the original ownership of the hotel changed hands, the property was not reassessed, resulting in a tax loss to Los Angeles County of over a million dollars annually.

Senator Bates authored a nearly identical bill in 2016, which won bipartisan support from the Senate Governance and Finance Committee, only to be killed quietly by the Democrat-controlled Senate Appropriations Committee.

A similar bill authored by former Assembly Members Tom Ammiano (D-San Francisco) and Raul Bocanegra (D-Pacoima) earned bipartisan support in 2014 and cleared the Assembly, only to die in the Senate.

Click here for a story from our friends at Fox & Hounds.

Below is more information on the bill.

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