We have all seen lots of articles circulating the internet and been hit up in front of the grocery store by people trying to get us to sign to sign a petition asking voters to support more funding for “Education and Local Government.” What exactly is this all about?
The initiative is in fact a challenge to Prop 13.
Prop 13, at its most simplified, bases our property tax rate on the property value at the time of property transfer of ownership allowing long-time residential owners to be able to afford to stay in their homes rather than being taxed on the home’s current value which is usually much higher. The important thing to note about the current initiative, however, is that it is a challenge to Prop 13’s impact on commercial and industrial properties, not residential properties. That means it won’t change the way Prop 13 impacts our homes but it will impact the taxation on most commercial and industrial properties.
I am not a fan of trying to drive more business out of California and I think that is what this will do. I did want to help clear up the misconception, however, that this pertains to residential property since it currently does not.
Here is some additional information: