BOMA Protects the Commercial Real Estate Industry - Proposition 13/Split Roll Property Tax

In August, proponents advocating for amending Proposition 13 and creating a split-roll property tax by ending the protections and certainty for commercial property, submitted signatures to place the initiative before voters on the November 2020 ballot.

Every commercial real estate organization - including BOMA California - has at some point over the last 30 years taken a position in opposition to split roll taxation – nothing in this measure changes that stance.

The measure itself is very clear in its actions:

• Bring all commercial properties to a new assessed 2020 value that becomes the new base year for taxation.
• Require that all commercial property be reassessed every three years thereafter.
• Establishes an exemption for properties valued at less than $1 million – however this is a questionable exemption as the property is reassessed every three years eventually it will lose that exemption.
• The measure removes all the tax protections provided by Proposition 13. 
• Ends the treating of all property the same for taxation purposes for the first time in California’s history. 

BOMA California is taking a strong opposed position against any proposed split roll tax initiative. Studies have shown it will have a negative impact on values, put many small businesses and tenants out of business. It will cost jobs and impact negatively the overall economy of California.

Feel free to visit this website for information: http://www.stophigherpropertytaxes.org/