California businesses are facing rising costs due to potential changes in property tax laws that could significantly impact your bottom line.
The Facts about the Potential Tax Changes
A recent opinion from the Sixth District Court of Appeal has opened the door for the Legislature to potentially alter the way business property taxes are assessed, undermining the protections established by Proposition 13.
Historically, the California Constitution ensured that all properties in the same geographic area were taxed at the same rate. Exceptions to this rule were rare, and they were difficult to adopt because they required a constitutional amendment on the ballot.
The recent court opinion suggests that the Legislature may now have the power to create new tax rate areas and apply different tax formulas to various types of property.
The Potential Tax Changes Could Hurt Businesses by:
Increase Property Taxes for Businesses
Could lead to a “split roll” tax system where business properties are taxed at higher rates, which could result in a dramatic increase in property taxes for businesses
Erode Decades of Tax Uniformity
Allows the Legislature to create an unstable tax environment where businesses face unpredictable and potentially unfair tax burdens
Counties are Advocating for Newfound Power
Counties across California have been arguing in similar cases that the Legislature has this unlimited, never-before-seen power – if this trend takes hold, the Legislature will not overlook the opportunity to shift tax burdens onto the business community
Businesses should not bear the brunt of legislative changes that could lead to skyrocketing and unfair taxes. California needs to maintain fair and stable tax policies to support a thriving business environment.
Join Our Coalition!
YES, you may list me as a member of Businesses for Property Tax Fairness, a coalition supporting fair and stable tax policies to support a thriving business environment.