As the national and state economies continue to struggle, California special interest groups continue to seek ways to generate new revenue.
 CAA Readies to Fight Initiatives and Legislation to Create a Split Roll Property Tax |
|---|
| As the national and state economies continue to struggle, California special interest groups continue to seek ways to generate new revenue. With California facing ongoing budget deficits, Governor Jerry Brown has said that because he was unable to raise taxes through the budget process, labor groups are likely to propose a change to Proposition 13 to allow a split roll property tax. Additionally, a new split roll tax proposal surfaced in the legislature this year in the form of a bill by Assemblyman Tom Ammiano (D-San Francisco). CAA was successful in helping derail the bill, but Assemblyman Ammiano has promised to bring it back again in 2012.
A split roll tax would change Proposition 13 to reassess and tax rental and commercial properties at their current market value. By reassessing residential rental property on an annual basis, a split roll tax would have a drastic impact and significantly increase the cost of owning and managing rental property. Numerous statewide labor groups have been floating the idea of putting a split roll initiative on the ballot in 2012. In addition, in a recent interview with the L.A. Times, Los Angeles Mayor Antonio Villaraigosa went even further and stressed that if Governor Brown doesn’t want to take up the charge to change Proposition 13, then he will. The California Apartment Association (CAA) has been a leader in the fight against changing Proposition 13 and establishing a split roll property tax. In fact, CAA-Los Angeles President Michael Farahnik, along with other local business leaders, responded to Mayor Villaraigosa in an open letter explaining the harmful effects of a split roll. (Click here to view the letter) CAA argues a split roll property tax would mean higher rents – leaving property owners and small businesses across the state with few unappealing options including raising rents, reducing wages, laying off employees, or even closing our doors for good. California’s renters will particularly be impacted by higher property taxes. Senior citizens, students and others on fixed incomes will see their rental costs increase dramatically as taxes on apartment buildings and rental homes rise and property owners have no choice but to pass those increases on to their residents. As 2012 elections get closer, CAA will be working with the business community and counting on CAA members and all rental property owners to join in the fight to prevent the dismantling of Proposition 13. Additionally, the Association will continue to educate elected officials and the public about the harmful effects of a split roll property tax. |