Building Owners and Managers Association

Improving the Performance of the Commercial Real Estate Industry
Split Roll Is on the Horizon
Proposition 13 Protection Threatened
Tuesday, June 16, 2015
by: Robin Jochims

Section: Association Business

Senator Holly Mitchell (D-Los Angeles) and Senator Loni Hancock (D-Oakland) gut-and-amended Senate Constitutional 5 into a split roll property tax measure. 

With a two-thirds vote of the Legislature, SCA 5 would seek 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.
SCA 5 removes Proposition 13 protections from commercial properties raising taxes by $9 BILLION

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.

In other words, SCA 5 removes Proposition 13 protections from commercial properties raising taxes by $9 BILLION
. Yes, you read that right; proponents of this measure are pushing for a nine billion dollar tax increase.

CBPA (of which BOMA is a member) 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.

How Prop. 13 Works

Consequences of Split Roll

You may see stories in the paper, online, and on the radio. Please know we are pushing back. Here are materials that can help you respond locally should you engage with the press or local opinion leaders.

Split roll property tax measure SCA 5 (Mitchell & Hancock)
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