At your request: This week's California Commentary by Jon Coupal
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** California Commentary
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Split roll can’t fix what ails California

By Jon Coupal

After several fits and starts, the battle over the defense of Proposition 13 began in earnest last week as progressive interest groups began gathering signatures for their new and hardly improved ballot measure to impose a multi-billion dollar “split roll” property tax on Californians. These same tax-and-spend interests had already qualified a previous version of their initiative for the 2020 ballot until they realized that it was full of drafting errors and were forced to try to replace it.

The proponents’ revised measure is no improvement and still represents the largest tax increase in the history of California. But that’s not what they will tell voters as they seek more than one million signatures to qualify the initiative. Indeed, their deception began immediately as their signature gatherers are already telling people that the property tax increase actually protects Prop. 13. But nothing could be further from the truth.

It is important for voters to understand the proposal. Here are the basics and why they should fear it. “Split roll” is a shorthand term for proposed changes to Prop. 13 that would allow higher property taxes on businesses than on homeowners. The “roll” is the county assessor’s property tax roll, the list of all real estate parcels that are subject to property taxes. “Split” refers to a division into two parts: residential and nonresidential property.

Under Prop. 13, which became part of the state constitution when voters approved it in 1978, all property in California is assessed under the same rules and taxed at the same rate. The tax rate is 1 percent, and the assessment is set at the property’s fair market value, usually the sale price, at the time it changes ownership. Thereafter, Prop. 13 limits increases in the assessed value to 2 percent per year or the rate of inflation, whichever is lower, until the property changes ownership again.

The initiative would revoke Prop. 13’s protection from nonresidential business and commercial property and require the reassessment of those properties to current market value. This would result in a tax increase on office buildings, retail stores, shopping malls, movie theaters, gas stations, supermarkets, warehouses, auto dealerships, car washes, restaurants, hotels and every other business in the state. Even very small businesses that lease space in a strip mall would see their operating costs jump sharply as a result of tax increases passed. The cost of living, already high in California, would be pushed even higher by this tax increase.

To read the entire column, please click here ([link removed]) .

A note to our valued members and supporters: To increase the reach of our message to as many Californians as possible, HJTA made an agreement with the Southern California News Group papers to carry Jon Coupal's weekly column. The newspapers in the group, including the Orange County Register and the Los Angeles Daily News, have added a paywall that allows only a limited number of page views per month, and then asks readers to become subscribers. HJTA is not marketing these subscriptions or receiving any payment from them. The columns are exclusive to SCNG's papers for one week and then are posted in full on HJTA's own website, www.hjta.org, under "California Commentaries," where you can read them at your convenience. Thank you for your understanding.

For your convenience, here are links to the opinion pages of all the SCNG papers:

www.whittierdailynews.com/opinion
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www.dailybulletin.com/opinion
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www.redlandsdailyfacts.com/opinion
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www.sgvtribune.com/opinion ([link removed])
www.ocregister.com/opinion
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www.pe.com/opinion
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www.dailynews.com/opinion
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www.pasadenastarnews.com/opinion
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www.sbsun.com/opinion
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www.dailybreeze.com/opinion
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www.presstelegram.com/opinion ([link removed])
Jon Coupal is the President of the Howard Jarvis Taxpayers Association (HJTA). He is a recognized expert in California fiscal affairs and has argued numerous tax cases before the courts.
HJTA is totally dependent on the voluntary support of California taxpayers.
Please consider a donation now to help us continue our work on your behalf.
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Howard Jarvis Taxpayers Association . 621 South Westmoreland Avenue, Suite 202 . Los Angeles, CA 90005 . USA