As noted last week, a major tax threat has been introduced in the form of a de facto split roll parcel tax.  According to a CalTax analysis, SB 1021 (Wolk; D-Davis) authorizes more than 1,000 California school districts to impose unlimited tax increases on select property owners by allowing the imposition of nonuniform parcel taxes. Under the bill, school districts could split parcel tax assessments within a district based on the square footage of a parcel, the square footage of improvements on a parcel, and/or the use of a parcel (but the same tax must be levied on all properties that have the same use).

SB 1021 also allows school districts to impose a different tax rate on unimproved parcels; and to treat multiple parcels as one — for purposes of a parcel tax — where the parcels are contiguous, under common ownership, and constitute one economic unit (they must have “the same primary purpose and are not separate and distinct properties that may be independently developed and sold”).

And most alarmingly, unlike most issues impact property taxes, due to the quirky fact that this law is not technically part of your Proposition 13 protections, this is a majority-vote bill.

We are working to build the coalition of businesses opposing this measure.  Because it can pass on a party-line vote we need to show the depth and breadth of how a split-roll will impact your business.

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