California Higher Property Taxes on Commercial Real Estate (2012)

From Ballotpedia

A California Higher Property Taxes on Commercial Real Estate Initiative (#11-0087) has been approved for circulation in California as an combined initiated constitutional amendment and state statute. To earn a spot on the state's 2012 ballot, sponsors of the initiative must collect 807,615 signatures.

If the measure gets on the ballot and is approved by voters, it will:

Change California law to require that commercial property be assessed at fair market value at least once every three years
This change explicitly will not apply to residential or agricultural property.
Any increased revenue received by the state will be subject to the provisions of 1988's Proposition 98.
Double the current homeowners' tax exemption and renters' credit.
Exclude from taxation the first $1 million in tangible personal property

Margaret R. Prinzing, who refers to the measure as the "Protect Homeowners and Close Corporate Tax Loopholes Act", submitted a letter requesting a ballot title on November 28, 2011.

Ballot language

See also: Ballot titles, summaries and fiscal statements for California's 2012 ballot propositions

Ballot title:

Requires Assessment of Most Commercial Property Every Three Years. Provides Tax Reduction for Homeowners, Renters, and Businesses.
Initiative Constitutional Amendment and Statute.

Official summary:

"Changes existing law to require that commercial property be assessed at fair market value at least once every three years. Excludes residential and agricultural property. Increased revenue is subject to Proposition 98, governing education funding. Doubles homeowners' tax exemption and renters' credit. Excludes from taxation the first $1 million in tangible personal property."

Summary of estimated fiscal impact:

(This is a summary of the initiative's estimated "fiscal impact on state and local government" prepared by the California Legislative Analyst's Office and the Director of Finance.)

"Annual state revenue increase of about $4 billion from higher property tax assessments on commercial and industrial property. New revenues used in part to increase state funding for schools and community colleges ($2 billion) and provide tax relief to homeowners and businesses ($1 billion). Annual local government revenue increase of about $450 million from higher property tax assessments on commercial and industrial property."

Path to the ballot

See also: California signature requirements

Margaret R. Prinzing submitted a letter requesting a ballot title on November 28, 2011.
The ballot title and ballot summary were issued by the Attorney General of California's office on January 23, 2012.
Sponsors of #11-0087 have until June 21, 2012 to collect 807,615 signatures to qualify the proposed initiative for the ballot.
However, to qualify specifically for the November 6, 2012 ballot, supporters will have to submit their signatures by about March 2 (if enough signatures are submitted that the random sampling technique can be used) or by late April (if the number of signatures is such that all signatures will have to be checked).