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Evolve is working to reform Proposition 13 so that commercial property pays its fair share, and funding is restored to schools and public services.


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Current Legislation

Senate Constitutional Amendment 5

Senate Constitutional Amendment 5 (SCA-5), the Property Tax Fairness amendment, would reform the commercial aspect of Prop. 13 by regularly reassessing commercial and industrial property at their fair market value. Introduced by State Senators Loni Hancock and Holly Mitchell, SCA-5 marks the first attempt in the state legislature to exempt commercial properties from Prop. 13 protection. This reform would restore $9 billion annually to our public schools and services by making some of the wealthiest corporations in the world pay their fair share.

Here are the primary provisions of SCA-5:

  • SCA-5 will not impact any residential property.  All homeowners and renters will not be affected whatsoever.  Also, the measure will not affect agricultural property.
  • Property tax rates will not change.  Property tax rates on California businesses will continue to be among the lowest in the country.
  • SCA-5 provides crucial tax relief for small businesses in California via a personal business property tax exemption of up to $500,000.  This will benefit all businesses in California, regardless of whether they rent or own their property, taking 90% of businesses off the personal property rolls.
  • SCA-5 provides for a 2-3 year phase-in of full market value payment of property tax for commercial and industrial property.  Also provides for a 5-year gradual phase-in for some smaller businesses.
  • SCA-5 will distribute the increased revenue according to current property tax allocation among cities, counties, and school districts.  It would require that the revenue increase caused by this measure be identified yearly.  It would also require new transparency and accountability measures for the new revenue.
  • The increased funding for schools will be placed in the Local School and Community College Property Tax Fund and redistributed statewide in accordance with Governor Brown's Local Control Funding Formula.  Also, increased funding from the measure will be prohibited from being used for administrative costs.