SACRAMENTO, Calif. (AP) – The state Assembly has approved legislation closing a Proposition 13 loophole that allowed some commercial real estate buyers to escape paying higher property taxes.
AB2372 was brokered in a rare deal supported by Democratic lawmakers and business groups. It passed Thursday on a 56-8 vote.
The Howard Jarvis Taxpayers Association, named for the champion of California’s landmark property tax reform, did not oppose the change.
If approved by two-thirds of the Senate, it would be the first ever change to the 1978 initiative that rolled back property taxes and capped how much they could increase each year.
The law requires a reassessment when property is sold, but companies have used ownership maneuvers to avoid triggering that change.
Democratic Assemblyman Tom Ammiano of San Francisco says his bill restores fairness and equality in the tax code.
Copyright 2014 The Associated Press.