Please join us for an overview of CA Proposition 15.
California Proposition 15, the Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative, is on the ballot in California as an initiated constitutional amendment.
Proposition 15 would amend the State Constitution to require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value. In California, the proposal to assess taxes on commercial and industrial properties at market value, while continuing to assess taxes on residential properties based on the purchase price, is known as split roll. The change from the purchase price to market value would be phased-in beginning in the fiscal year 2022-2023. Properties, such as retail centers, whose occupants are 50 percent or more small businesses would be taxed based on market value beginning in the fiscal year 2025-2026 (or at a later date that the legislature decides on).
The ballot initiative would make an exception for properties whose business owners have $3.00 million or less in holdings in California; these properties would continue to be taxed based on their purchase price.
The state fiscal analyst estimated that, upon full implementation, the ballot initiative would generate between $8 billion and $12.5 billion in revenue per year.