CALIFORNIA – On November 3, California voters will be asked to decide 12 different statewide propositions. Action News Now is taking a look at Proposition 15, the commercial property tax measure.
Prop. 15 would permit taxing those commercial properties valued at more than three million dollars, based on current market value. That's a huge change since Prop 13 was passed all the way back in 1978.
That 42 year old measure removes caps on property taxes that for all these years had been set at 1% of the original sale price. And then that tax can only be increased by no more than 2% per year. That means that the property’s value can skyrocket - but the commercial property tax does not.
Again, Prop 15 would remove those caps, but does not affect homeowners, nor owners of agricultural property, nor commercial properties valued under three million dollars.
But, opponents worry that if Prop 15 passes, homeowners could be targeted next time around.
Analysts say the increase in commercial property taxes, if Prop. 15 passes could bring in up to $11.5 billion each year in additional revenue. 60% of that would go to local governments. 40% to education.
So, a yes vote on Prop. 15 approves the tax increase on commercial properties. A no vote keeps things as they have been since 1978.