By Laura Perdew
The Senate this week passed a California Chamber of Commerce-opposed “job killer” bill that creates a split roll parcel tax at the local level.
SB 1021 (Wolk; D-Davis), passed by the Senate on May 5, authorizes school districts to impose a higher parcel tax on commercial property than residential property.
SB 1021 seeks to redefine the term “special taxes that apply uniformly” to mean special taxes that may be applied discriminatorily and unfairly.
Layers of Taxes
Notably, there is nothing in SB 1021 that would prevent the school district from imposing both a parcel tax based upon use as well as a parcel tax based upon square footage, thereby allowing a district to impose layers of taxes against commercial versus residential property.
The likelihood of a school district imposing discriminatory parcel taxes is evidenced by the recent case of Borikas v. Alameda Unified School District, 214 Cal.App.4th 135 (2013), in which the Alameda School District’s Measure H that sought to tax residential and commercial/industrial properties differently was deemed unlawful.
The risk of multiple, nonuniform, targeted taxes against unpopular taxpayers is exacerbated by the provision of SB 1021 that allows the district to treat multiple parcels the same if the parcels are contiguous or owned by …read more
Source: Fullerton Chamber of Commerce