The Legislature is once again trying to modify Prop 13 so that school districts can impose a higher parcel on commercial property than on residential property (ref: SB 1021). The legislation also has the potential, as currently written, to be applied in a discriminatory and unfair manner.
As with other types of split-roll parcel taxes, businesses, large and small, will have no realistic choice except to pass them on to tenants, who, will in turn, need, in many cases, to pass on all or a major part of the cost to their customers.
Just a few days ago, on May 5, the Senate adopted the bill by a vote of 21-15, so it now goes to the Assembly for consideration. All but 3 Democrats voted “yes”, while those 3 joined a 100% “no” vote from the Republican side.
So, it seems likely that the Bill may adopted in the Assembly, in which case Governor Brown is sure to sign it. One can only hope that enough members will “see the light” before final adoption, to prevent this economic- and job-killing law from becoming law!
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.