Issue Position: Proposition 13

Issue Position

Proposition 13 provides essential protections to residential and commercial property owners. However, over time, when properties are not sold as often as others, and therefore not reassessed, similar adjacent can have widely varying tax burdens. Also since commercial properties general do not turnover as much as residential properties, some think corporations are getting big tax breaks.

Reforms to Proposition 13 have been proposed to impose a 'split roll' to assess commercial properties at a higher tax rate. That would be bad for businesses and jobs and make California even less competitive than other states. In any case, properties eventually are reassessed when sold to even out assessments over time. Proposals to reform Proposition 13 to generate revenue that could be used for new spending that may not always be sustainable, further challenging the state budget.

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