Newly-elected California assembly member Rob Bonata has introduced a bill that will allow Alameda school districts to set different rates for residential and commercial properties.
If passed it will nullify a state Appeals Court ruling in December overturning a local property tax which levied one rate for residential and small commercial properties and separate one for larger commercial properties.
Alameda County Courthouse
Parcel taxes are generally imposed at a flat rate on every real estate parcel; the size or use of the property is irrelevant in this instance. This is a means for school districts to raise money independently. In most instances, parcel taxes require a two-thirds majority to pass. This year the Legislature will consider an amendment which will lower the requirement to 55 per cent.
In its ruling, the Appeals Court stated that a 1986 state law clarifying Proposition 13 required all parcel taxes to be uniform. Alameda, like other districts, had interpreted this ruling to mean that the rates should be the same “within classes of properties.”
The new bill would allow school districts to assess taxes so that rates would be set according to classifications. Under Proposition 13, property taxes may not be levied based on property value.
Advocates see charging taxes based on square footage or at different rates as being a much more fair system for commercial property and homeowners alike.
However, not everyone agrees with the amendment. Loren Kaye, the president of the California Foundation for Commerce and Education, has stated that the organization would “strongly oppose” the legislation on the basis of “imposing discriminatory taxes.”
The Alameda Unified School Board voted to appeal the court ruling to the state Supreme Court. This process is expected to take more than a year. If it passes it would overturn the Appeal Court ruling and settle the issue.
Previous Post
Power Station Closures will Push Up Energy Prices
