Prop. 13 ‘split roll’ looms: Karma for Chamber of Commerce?

Nov. 7, 2012

By Chris Reed

For years, the California Chamber of Commerce has had a squishy aversion to confrontation and a comfort level with Sacramento’s machine politicians that should inflame any small-government conservative. What has this toadying and willingness to fight against constructive state initiatives and stay mum about destructive ballot measures gotten them? Will the Democrats who now control Sacramento like the Kim family controls Pyongyang cut them any breaks?

Hardly. Instead, we’re likely to see a coming bid to end the Proposition 13 protections for commercial property. The new Public Policy Institute of California poll shows the public is ready to make the change, and Sacramento certainly wants the billions in revenue it would produce. Per the PPIC:

PROPOSITION 13 — POPULARITY ENDURES

Now that Californians have approved the Proposition 30 tax initiative and Democrats have gained a two-thirds majority in the legislature, there is renewed discussion about changing Proposition 13, the 1978 initiative that limits both residential and commercial property taxes. Asked about Proposition 13, Californians remain highly positive about its overall impact. Solid majorities (60% adults, 64% likely voters) say it has been mostly a good thing for the state. Fewer (31% adults, 29% likely voters) say it has been mostly bad. Across political groups, regions, and demographic groups, majorities consider it a good thing for the state. However, Californians’ views are mixed when asked about the effect of Proposition 13’s tax limitations on local government services: 29 percent say the effect has been good, 25 percent say it has been bad, and 36 percent say there has been no effect.

There is support for one change to Proposition 13 — a “split roll” property tax. Majorities (57% adults, 58% likely voters) favor taxing commercial properties — now protected under Proposition 13 — according to their current market value. Most Democrats (66%) and independents (58%) favor the proposal, while Republicans are divided (47% favor, 48% oppose).

If this happens, I think it would be a bad thing for California. But it would sure feel like appropriate karma for the way the chamber and many big businesses have behaved over the years in kissing up to or acting as an extension of the Sacramento establishment.