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.
Please email Matthew Hargrove at firstname.lastname@example.org if you are interested in adding your company to the coalition letter opposing this measure.