{"id":2599,"date":"2020-03-09T11:30:58","date_gmt":"2020-03-09T18:30:58","guid":{"rendered":"https:\/\/sandiegonewsdesk.com\/?p=2599"},"modified":"2020-03-09T16:22:21","modified_gmt":"2020-03-09T23:22:21","slug":"senator-patricia-bates-authors-measure-to-clarify-prop-13-1978-property-change-of-ownership","status":"publish","type":"post","link":"https:\/\/sandiegonewsdesk.com\/?p=2599","title":{"rendered":"Senator Patricia Bates Authors Measure to Clarify Prop. 13 (1978) Property \u201cChange of Ownership\u201d"},"content":{"rendered":"

Bill Could Generate $269 Million in New Tax Revenue \u2013 Without Raising Taxes<\/em><\/p>\n

SACRAMENTO \u2013 Senator Patricia Bates (R-Laguna Niguel) announced today that she has reintroduced legislation to correct an outdated interpretation of property \u201cchange of ownership\u201d that has been part of the long running debate around commercial property and Proposition 13 (the 1978 initiative that limited property tax increases).<\/p>\n

\u201cProposition 13 exists to ensure that property taxes do not go out of control for any California homeowner or business,\u201d said Senator Bates. \u201cBut it is not right that some people have exploited an outdated interpretation of Prop. 13 to avoid paying the property taxes that they legitimately owe. While liberal interest groups may use an extreme example as a pretext to wipe out all Prop. 13 tax protections for commercial property, the Legislature can instead use a scalpel to prevent further abuses.\u201d<\/strong><\/p>\n

Senate Bill 1319<\/a> requires reassessment of any property or single transaction if 90 percent of the ownership interest changes hands within any three-year period. The bill will prevent a repeat of examples similar to the 2006 purchase of Santa Monica\u2019s Miramar Hotel where the purchaser realized he could structure the transaction without any one entity owning a 50 percent majority share in the property.<\/p>\n

Despite the fact that 100 percent of the hotel\u2019s ownership changed hands, reassessment of the property did not occur, resulting in a tax loss to Los Angeles County of over $1 million annually. Had SB 1319 been in effect in 2006, Los Angeles County would have reassessed the Miramar Hotel.<\/p>\n

SB 1319 also increases the penalty for failure to file a \u201cchange in ownership\u201d statement, from 10 to 15 percent of the taxes applicable to the new base year value (or old base year value, if there is no change in ownership). The bill requires the California Board of Equalization (BOE) to notify assessors if a legal entity change in ownership occurs and to submit a report to the Legislature by January 1, 2023, regarding the bill\u2019s economic impact and frequency of assessment.<\/p>\n

Democratic-controlled legislative committees previously killed similar bills from Senator Bates: SB 259 (2015)<\/a> and SB 1237 (2018)<\/a>. The BOE estimated that SB 1237 could have generated $269 million annually in new tax revenue.<\/p>\n

SB 1319 is also similar to a 2014 bill authored by former Democratic Assembly Members Tom Ammiano and Raul Bocanegra. Their bill, AB 2372 (2014)<\/a>, cleared the Assembly with bipartisan support, only to die in the Senate.<\/p>\n

The following stakeholders made statements in support of Senator Bates\u2019 latest bill to clarify Prop. 13:<\/p>\n

Jon Coupal, President of the Howard Jarvis Taxpayers Association:
\n\u201cThe sort of abuse of the \u2018change of ownership\u2019 rules that occurred with the purchase of the Santa Monica hotel can easily be remedied by this legislation. Opposition to this bill exposes progressive tax and spend interests as not being serious about corrective action that is consistent with the letter and spirit of Proposition 13. What they really want is wholesale destruction of Proposition 13 in a way that generates $12 billion in higher taxes for the purposes of funding their narrow interests.\u201d<\/strong><\/p>\n

Rob Lapsley, President of the California Business Roundtable (@CalRoundtable):
\n\u201cSB 1319 will further strengthen Prop. 13 by closing a loophole established by the Legislature more than 40 years ago. Prop. 13 continues to be the most important protection homeowners and businesses have against higher property taxes. It provides certainty that homeowners can afford to stay in their homes and businesses can continue to operate. CBRT has strongly supported the previous bills and strongly support SB 1319 as an important step in protecting and strengthening Prop. 13.\u201d<\/strong><\/p>\n

Rex Hime, President and CEO of the California Business Properties Association:
\n\u201cEnacting Senator Bates\u2019 bill into law would be a good example of policy over politics. It would provide local governments with resources to meet their many needs.\u201d<\/strong><\/p>\n

SB 1319 is currently awaiting a hearing date from the Senate Governance and Finance Committee.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bill Could Generate $269 Million in New Tax Revenue \u2013 Without Raising Taxes SACRAMENTO \u2013 Senator Patricia Bates (R-Laguna Niguel) announced today that she has reintroduced legislation to correct an outdated interpretation of property \u201cchange of ownership\u201d that has been part of the long running debate around commercial property and Proposition 13 (the 1978 initiative…<\/p>\n","protected":false},"author":3,"featured_media":2286,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases"],"yoast_head":"\nSenator Patricia Bates Authors Measure to Clarify Prop. 13 (1978) Property \u201cChange of Ownership\u201d - San Diego News Desk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sandiegonewsdesk.com\/?p=2599\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Senator Patricia Bates Authors Measure to Clarify Prop. 13 (1978) Property \u201cChange of Ownership\u201d - San Diego News Desk\" \/>\n<meta property=\"og:description\" content=\"Bill Could Generate $269 Million in New Tax Revenue \u2013 Without Raising Taxes SACRAMENTO \u2013 Senator Patricia Bates (R-Laguna Niguel) announced today that she has reintroduced legislation to correct an outdated interpretation of property \u201cchange of ownership\u201d that has been part of the long running debate around commercial property and Proposition 13 (the 1978 initiative...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sandiegonewsdesk.com\/?p=2599\" \/>\n<meta property=\"og:site_name\" content=\"San Diego News Desk\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-09T18:30:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-09T23:22:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/sandiegonewsdesk.com\/wp-content\/uploads\/2020\/01\/patbates.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/sandiegonewsdesk.com\/#organization\",\"name\":\"San Diego News Desk\",\"url\":\"https:\/\/sandiegonewsdesk.com\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/sandiegonewsdesk.com\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/sandiegonewsdesk.com\/wp-content\/uploads\/2019\/07\/Logo-SanDiegoNewsDesk-Article.png\",\"contentUrl\":\"https:\/\/sandiegonewsdesk.com\/wp-content\/uploads\/2019\/07\/Logo-SanDiegoNewsDesk-Article.png\",\"width\":1200,\"height\":720,\"caption\":\"San Diego News Desk\"},\"image\":{\"@id\":\"https:\/\/sandiegonewsdesk.com\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/sandiegonewsdesk.com\/#website\",\"url\":\"https:\/\/sandiegonewsdesk.com\/\",\"name\":\"San Diego News Desk\",\"description\":\"Your Source for News in San Diego\",\"publisher\":{\"@id\":\"https:\/\/sandiegonewsdesk.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/sandiegonewsdesk.com\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/sandiegonewsdesk.com\/?p=2599#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/sandiegonewsdesk.com\/wp-content\/uploads\/2020\/01\/patbates.jpg\",\"contentUrl\":\"https:\/\/sandiegonewsdesk.com\/wp-content\/uploads\/2020\/01\/patbates.jpg\",\"width\":1200,\"height\":720},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sandiegonewsdesk.com\/?p=2599#webpage\",\"url\":\"https:\/\/sandiegonewsdesk.com\/?p=2599\",\"name\":\"Senator Patricia Bates Authors Measure to Clarify Prop. 13 (1978) Property \\u201cChange of Ownership\\u201d - 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