Issue Position: Community Investment

Issue Position

One of the most effective ways we can invest in California is by reforming Proposition 13. Passed back in 1978, the California proposition allowed families to effectively budget a mortgage and taxes by establishing an annual cap of a 2% increase on property taxes. Additionally, anytime property is sold, a reassessment of the current property value and tax is charged to the new buyer. However, under Prop 13 there is no annual reassessment on commercial property. Consequently, large commercial businesses pay significantly less in property taxes than new businesses, small businesses, and California families. California needs to simply reform Prop 13 to allow for the regular reassessment of commercial property, like every other state in the nation. The proposed 1% reassessment tax on commercial property is projected to create $9 billion in revenue which would be under the local control of cities and counties.

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