Friday, April 8, 2011

Proposition 13 Split Roll Measure Returns - Report from BOMA California




BOMA San Francisco Members:

Our tireless BOMA California advocates in Sacramento have been watching Assemblymember Tom Ammiano's (D-San Francisco) legislation, AB 448, targeting property protections under Proposition 13 and create a path to a Split Roll property tax in California.

AB 448 is very similar in approach to a bill that was introduced last year, but died on the Assembly Floor.  It would change Proposition 13 to make it easier to raise property taxes on corporations.  It would impose a complex and burdensome, split roll property tax by redefining 'change in ownership' as it relates to legal entities and publicly traded companies.

A review of the bill from CalTax reveals that AB 448 would:
  • Trigger reassessment of property owned by publicly traded corporations once every three years;
  • Expand the definition of change of ownership for property tax reassessment purpose by specifying that a change in ownership occurs when 100% of the ownership interests in a legal entity are sold or transferred in a single transaction, whether or not any one legal entity or person that is a party to the transaction acquires more than 50% of the ownership interests;
  • Require a person or legal entity acquiring ownership interests in a legal entity, when 100% of the ownership interests in the legal entity are sold or transferred, to file a change in ownership statement signed under penalty of perjury with the State Board of Equalization; 
  • Increase the penalties for failure to file a change in ownership statement from 10% to 20% of the taxes applicable to the new base year value.
The bill is set for hearing in the Assembly Revenue and Taxation Committee on Monday, May 16.  On the ground efforts in Sacramento are being led by Cal-Tax, CalChamber, and the CPBA to educate members about the harmful impacts of raising taxes on properties.

Please email Matthew Hargrove at mhargrove@cbpa.com if you are interested in adding your company to the coalition letter opposing this measure.

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