Fall 2014
Committee:
External Affairs Committee, Legislative & External Policy
Whereas, Proposition 13 was passed in 1978 by 63% of California voters, freezing property tax assessment at 1975 levels, regardless of a property’s status as residential or commercial, by amending the Constitution of California to shift assessment from market value to the value of the property at acquisition (1);
Whereas, owners of commercial property have greatly benefited under current reassessment rules, to the extent that the State of California loses out on at least $6 billion per year in potential tax revenue , and has caused California homeowners to now shoulder 72% of the property tax burden, compared to 60% prior to the passage of Proposition 13( 2);
Whereas, tuition has increased by 400% in the California Community Colleges system, 300% at the University of California and California State University in the last decade alone, while per pupil K12 education funding has fallen to forty-ninth in the entire country. Because of these shortfalls, California will soon face a shortage of qualified, skilled workers with vocational education training, Bachelor, and/or graduate degrees historically provided by the CCC, CSU, and UC systems, creating a threat to the stability of California’s economy and long-term health of our state;
Whereas, creating a split roll to maintain Proposition 13 protections for homeowners and small businesses will close the corporate loophole in Proposition 13, ensuring large corporations cannot avoid paying their fair share of property taxes. This corporate loophole will allow the State of California to receive at least $6 billion in lost tax revenue annually, $2.3 billion of which would be allocated automatically to K12 schools and the California Community Colleges system under the provisions of Proposition 98; and
Resolved, that the Student Senate for California Community Colleges strongly supports the creation of a split roll in the assessment of property taxes in California, while maintaining Proposition 13 protections for residential property and small business owners;
Resolved, that the Student Senate for California Community Colleges strongly supports the regular reassessment of all nonresidential, commercial property in California; and
Resolved, that the Student Senate for California Community Colleges urges its elected leaders in the California State Assembly, the California State Senate, and the Governor of California to place a referendum on the 2016 ballot, allowing the people of California to vote on a proposition calling for the closure of the commercial loophole in Proposition 13; and
Resolved, that the Student Senate for California Community Colleges recognizes reform of Proposition 13 to be its top legislative priority in replacing the expiring provisions of Proposition 30 and for the purpose of stabilizing and providing for long-term funding for public education in California.
1. What is Proposition 13? (n.d.). Retrieved from California Property Tax Information: http://www.californiataxdata.com/pdf/Prop13.pdf
2. Miller, G. F. (2014). Chief Legislative Analyst. Sacramento: California State Legislature.
3. Tipps, D. C., & Webb, L. (1980). State and Local Tax Revolt: New Directions for the 80's. Piscataway: Transaction Publishers.
Whereas, owners of commercial property have greatly benefited under current reassessment rules, to the extent that the State of California loses out on at least $6 billion per year in potential tax revenue , and has caused California homeowners to now shoulder 72% of the property tax burden, compared to 60% prior to the passage of Proposition 13( 2);
Whereas, tuition has increased by 400% in the California Community Colleges system, 300% at the University of California and California State University in the last decade alone, while per pupil K12 education funding has fallen to forty-ninth in the entire country. Because of these shortfalls, California will soon face a shortage of qualified, skilled workers with vocational education training, Bachelor, and/or graduate degrees historically provided by the CCC, CSU, and UC systems, creating a threat to the stability of California’s economy and long-term health of our state;
Whereas, creating a split roll to maintain Proposition 13 protections for homeowners and small businesses will close the corporate loophole in Proposition 13, ensuring large corporations cannot avoid paying their fair share of property taxes. This corporate loophole will allow the State of California to receive at least $6 billion in lost tax revenue annually, $2.3 billion of which would be allocated automatically to K12 schools and the California Community Colleges system under the provisions of Proposition 98; and
Resolved, that the Student Senate for California Community Colleges strongly supports the creation of a split roll in the assessment of property taxes in California, while maintaining Proposition 13 protections for residential property and small business owners;
Resolved, that the Student Senate for California Community Colleges strongly supports the regular reassessment of all nonresidential, commercial property in California; and
Resolved, that the Student Senate for California Community Colleges urges its elected leaders in the California State Assembly, the California State Senate, and the Governor of California to place a referendum on the 2016 ballot, allowing the people of California to vote on a proposition calling for the closure of the commercial loophole in Proposition 13; and
Resolved, that the Student Senate for California Community Colleges recognizes reform of Proposition 13 to be its top legislative priority in replacing the expiring provisions of Proposition 30 and for the purpose of stabilizing and providing for long-term funding for public education in California.
1. What is Proposition 13? (n.d.). Retrieved from California Property Tax Information: http://www.californiataxdata.com/pdf/Prop13.pdf
2. Miller, G. F. (2014). Chief Legislative Analyst. Sacramento: California State Legislature.
3. Tipps, D. C., & Webb, L. (1980). State and Local Tax Revolt: New Directions for the 80's. Piscataway: Transaction Publishers.