NEWS
PROPERTY PROP An effort to reform the state’s historic limit on property taxes—passed in 1978 through Proposition 13—goes to voters.
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Touchy Tax
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Prop. 15 approaches the “third rail” of California politics BY JANICE BITTERS
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f Proposition 15 prevails at the ballot next month, that’s anyone’s guess. Nonetheless, the measure to reform how property is taxed and money is distributed is the closest anyone’s gotten to touching the “third rail” of California politics— despite nearly 40 years of attempts. Proposition 13, which passed in 1978, froze property tax assessments at purchase, allowing for small annual tax increases and ensuring that people—particularly those on
fixed incomes—wouldn’t be taxed out of their homes as property values soared. That made the law untouchable. Prop. 13, however, also generously applied the tax break to nonresidential properties, from towering office buildings to golf courses. Prop. 15 would change that by mandating that commercial properties be assessed every three years and taxed at their current fair market value. The proposition, known as “Schools and Communities First,” would not change
how single-family houses, condos and apartment buildings are assessed. Some critics, including Prop. 13 reform proponents, believe Prop. 15 contains a poison pill for the Bay Area: it would export money out of the region. Progressive voters who may be inclined to support Prop. 15 because they believe in property tax reform may not know that’s what they are voting for, said Jennifer Bestor, volunteer research director for the nonprofit Educate Our State. “If you understand property tax allocation—and this [measure] came out of L.A., and those folks do—the way that it all falls out is actually they [Los Angeles] end up also being the biggest taker from the statewide school pot,” said Bestor, who was speaking on behalf of herself and not Educate Our State. “This whole thing is meant to extract money up here and ship it down there.”
Advocates for Prop. 15, known as Schools and Community First, say it’s not that simple. While money will move between counties if the measure is approved, the distribution is meant to send money to the neediest schools and equalize education across California, which ranks 41st nationwide when it comes to K-12 per-student spending after adjusting for the cost of living, according to the California Budget and Policy Center. Alex Stack, communications director for the Schools and Community First campaign, said in an interview that California “has created incredible wealth, and every single school in the state will benefit.” He added, “We are fine with ESL learners and foster kids and low-income students getting a bit more resources.” Stack says that with Prop. 15, each
