39 years ago today, California voters passed Proposition 13, which has stifled the state’s ability to collect on the property taxes of businesses for decades. There is a new bill being introduced to the California State Senate to reform Prop 13 and we need your help in promoting it. We’re asking all of our interested members to call State Senate Pro Tempore Kevin De Leon’s and tell him that we need Prop 13 reform now. Below is the phone number as well as a call script in case you need any talking points. Thanks for all of your help!
Kevin De Leon (@CAproTem) Call Script:
Sacramento Office: (916) 651-4024
Hi, I heard that Nancy Skinner (@NancySkinnerCA) is planning to introduce a bill to reform Proposition 13, which 39 years ago, today, was passed by the voters in 1978. I think this is a great idea that is long overdue. I wanted to let the Senator know that I hope he will be a champion of this legislation.
My name is _______ and my zip code is ______. Thank you.
Info on Reform
Senate Constitutional Amendment 5 (SCA-5), the Property Tax Fairness amendment, would reform the commercial aspect of Prop. 13 by regularly reassessing commercial and industrial property at their fair market value. This reform would restore $9 billion annually to our public schools and services by making some of the wealthiest corporations in the world pay their fair share.
Here are the primary provisions of SCA-5:
- SCA-5 will not impact any residential property. All homeowners and renters will not be affected whatsoever. Also, the measure will not affect agricultural property.
- Property tax rates will not change. Property tax rates on California businesses will continue to be among the lowest in the country.
- SCA-5 provides crucial tax relief for small businesses in California via a personal business property tax exemption of up to $500,000. This will benefit all businesses in California, regardless of whether they rent or own their property, taking 90% of businesses off the personal property rolls.
- SCA-5 provides for a 2-3 year phase-in of full market value payment of property tax for commercial and industrial property. Also provides for a 5-year gradual phase-in for some smaller businesses.
- SCA-5 will distribute the increased revenue according to current property tax allocation among cities, counties, and school districts. It would require that the revenue increase caused by this measure be identified yearly. It would also require new transparency and accountability measures for the new revenue.
- The increased funding for schools will be placed in the Local School and Community College Property Tax Fund and redistributed statewide in accordance with Governor Brown’s Local Control Funding Formula. Also, increased funding from the measure will be prohibited from being used for administrative costs.