Supporters of a split roll property tax held a May 6 press conference at the Capitol to bash businesses and criticize the property tax system created by the voters with Proposition 13. The conference was designed to promote AB 2492 (Ammiano), which would change the definition of "change of ownership" in an attempt to reassess property owned by legal entities that don't actually change control.
During the press conference, Assemblyman Tom Ammiano said he would like to "nuke" Proposition 13, and added that doing away with Proposition 13's protections for property owners will be the focus of his remaining time in office.
While discussing his legislation, Mr. Ammiano claimed that Proposition 13 is full of "loopholes" that are used by businesses to avoid reassessment after changes of ownership, and he said this costs the government huge amounts of tax revenue each year. After talking about "loopholes" in Proposition 13, he said: "You know, if it takes an incremental approach, then so be it. You know, my tendency is to want to nuke it. However, one has to deal with political dynamics here in California."
The legislator predicted "a change in middle-class attitudes toward Prop. 13" as government programs are cut back. (Cal-Tax: He did not address the fact that these programs have grown significantly in the 32 years that Proposition 13 has been in effect.)
Mr. Ammiano, who is in his first term, added: "I am tremendously focused on this. I have tunnel vision on this. This is an issue that will not go away for me in my remaining 4½ years."
Joining Mr. Ammiano were Lenny Goldberg, of the union-affiliated California Tax Reform Association, and representatives of the California Teachers Association, the Alliance of Californians for Community Empowerment, and the Western Center on Law and Poverty.
The San Jose Mercury News reported that Santa Clara County Assessor Larry Stone "bristled at the idea" that assessors have been slow to reassess bank branches following mergers, as Mr. Goldberg claimed. "When we have a major acquisition or merger, we reassess — and we've been doing that for years," Assessor Stone said. He added that reassessments were done in his county after Chevron bought Texaco and when Hewlett-Packard took over Compaq.
Cal-Tax has been actively lobbying against AB 2492, noting that it would add uncertainty to the property tax system and would increase taxes on business owners – including small businesses that rent property owned by larger corporations – at a time when many California businesses are barely staying afloat. The bill also could lead to rent increases for seniors and low-income Californians who live in apartment buildings owned by corporations targeted by the new change-in-ownership language.
Cal-TaxReports, May 10, 2010
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