PROP 13 - STILL UNDER ATTACK!

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It's incredible that more than three decades after its passage, Proposition 13 is still such a polarizing political symbol – not only in California, but around the world. I remember meeting Howard Jarvis, the author of Prop 13, for the first time when I first started lobbying on tax issues for the California Manufacturers Association – a man with a true vision and a determination to match. Prop 13 has been copied in many other states.

In the business community most people revere Prop 13 for slashing property taxes and making it much more difficult to raise other taxes. It has to be said that the opposition sees it as the worst form of political devilry, denying sustenance to vital public services at the local level.

Over the years, the opposition to Prop 13 has tried many times to have it repealed but has failed. Over the last 10 years opponents have come to realize that a full frontal assault is bound to fail, so they have set about to change various pieces of the popular ballot initiative, such as its requirement of a two-thirds vote for any tax increase. The other major attack comes in the form Prop 13's application to business property.

A so-called "split roll" would treat business property very differently from residential property, requiring an annual assessment of property and/or an assessment when the business undergoes a change of ownership.

In 2009 the California Taxpayers Association issued a lengthy report concluding that property taxes on "business and non-homeowner property" had increased faster than taxes on owner-occupied homes. Thus there was no need to create a split roll.

The legislature will be grappling with this issue over the next few months. We may even see another ballot initiative on the subject. I believe it is a bad idea made even worse by the state of the economy. Businesses are striving to keep jobs and expand when possible. There are even signs of a slight recovery in the business climate. The split property tax roll would squash any signs of a healthy economic recovery.

Pest Control Operators of California
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