Reform California to outlines campaign to protect changes to Prop 13 and stop property tax increases
SAN DIEGO (KUSI) – Reform California says Democrat politicians in Sacramento have launched an assault to repeal Prop 13 and raise taxes this November. Prop 13 is an important law that set limits on property tax increases and allowed both residential and commercial property to be reassessed only when it was sold.
Carl DeMaio, Chairman of Reform California has been a long time critic of California Democrats.
A revised state initiative that would boost property taxes on large commercial and industrial property by allowing it to be reappraised more frequently has qualified for the November ballot.
A new initiative, called “Schools and Communities First” by its authors, would repeal a portion of what is known as Proposition 13, the landmark 1978 California ballot initiative that overhauled how the state taxes property. Since then, California has capped property tax increases at no more than 2% each year on homes, businesses and farmland. Properties are reassessed when they are sold at 1% of the sale price.
While the law has been great for property owners, it has made it harder for local governments and school districts to pay for services because a big portion of their revenue comes from property taxes. This proposed amendment would require California to tax commercial and industrial property based on the market value, raising taxes on those properties by up to $12 billion per year statewide.
The amendment would not apply to homes, farmland and owners of commercial or industrial property with a combined value of $3 million or less.
Supporters say that money would go to cash-strapped public schools, community colleges and local governments. But opponents say it would hurt small businesses who are struggling to survive in a high-cost state, including farmers who would be affected by higher taxes on processing facilities and grocery stores.
To bring awareness opposing the initiative to change Prop 13, DeMaio has organized a statewide virtual town hall where he outlined the campaign to protect Prop 13, and share instructions on how supporters can help him out.
DeMaio discussed the campaign to save Prop 13 on KUSI’s Good Morning San Diego.