Corporate loophole closed with Prop. 15

By Zipporah Collins, San Francisco | 9/03/20

Regarding “Editorial: Prop. 15 won’t fix biggest California property tax problem” (East Bay Times, August 28)

Your Aug. 28 editorial against Proposition 15 leaves out a key loophole in current law that Proposition 15 fixes: a “sale” of property is said to occur only when one owner takes 50% or more title to the property, as happens in most home sales.

But wealthy corporations structure buying property so that there are three or more owners, none with 50% title, so the property keeps its old assessment and low tax rate.

Proposition 15 will reassess commercial property regularly, whether sold or not, as it is in the rest of the U.S. More than 90% of the $12 billion a year in new revenue for schools and local services will come from the richest 10% of commercial owners. Vote yes on Proposition 15 to restore funds to our schools and local services. They need it now more than ever.