Increases Funding Sources for Public Schools, Community Colleges, and Local Government Services by Changing Tax Assessment of Commercial and Industrial Property
initiative constitutional amendment
Official Summary
Taxes such properties based on current market value, instead of purchase price.
Fiscal Impact: Increased property taxes on commercial properties worth more than $3 million providing $6.5 billion to $11.5 billion in new funding to local governments and schools.
support: $56,320,926 - Mark Zuckerberg ($13M), CA Teachers
oppose: $60,905,901 - California Business Roundtable Issues PAC (half)
Notes
If the owner has more than $3 million of commercial land and buildings in California, tax on current market value, instead of purchase price. Reduces the taxable value of each business’s equipment by $500,000 starting in 2024. Businesses with less than $500,000 of equipment pay no taxes on those items. All property taxes on business equipment are eliminated for California businesses that meet certain rules and have 50 or fewer employees.