Close the corporate loophole in Prop 13

By Rhys Hedges

Regarding “Here’s a fair way to reform Prop 13 for all homeowners” (Letters to the Editor, SFChronicle.com, Dec. 21): It’s fantastic that we’re finally having a conversation surrounding reforming Proposition 13, but focusing on reforming the homeowner side misses the forest for the trees.

It is much more important to reform the commercial side of Prop 13. Big corporations like Disney and Chevron are still paying property tax levels based on what their hugely profitable properties were worth 50 years ago.

We could restore $17 billion every year to California’s local governments by making commercial entities pay market-rate property taxes, all without harming elderly homeowners or small businesses.

I agree that Prop. 13 needs to be reformed, but focusing only on homeowners will not restore nearly enough revenue to our schools and public services. In fact, commercial property does not change hands nearly as frequently as residential, if at all, which means that homeowners shoulder too large a portion of California’s tax burden.

Let’s put California on par with other states that tax commercial property by closing the corporate loophole in Prop 13.