Attorney General No.

SA89RF0004

Secretary of State No.

461

Description

SPLIT ROLL PROPERTY TAXES. INITIATIVE CONSTITUTIONAL AND STATUTORY AMENDMENT. Raises non-residential property tax rates to 2.2%, annual assessment cap to 5%. Residential tax rate unchanged. Raises homeowners exemption from $7,000 to $57,000 for homes valued under $1,000,000. Increases renters' tax credit to $637 (married individuals), $310 (individuals). Personal property subject to $100,000 exemption. New revenues go first to counties and state to offset revenue loss caused by exemptions and credits. Next $2 billion allocated for assistance to homeless, loans to "first-time" home buyers, assistance to those providing housing to qualified households. Remaining revenues apportioned among local entities. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: In 1991-92, when measure fully implemented, non-residential property taxes would increase by $7.9 billion. All of the proceeds would be used to fund (a) increased homeowners' and renters' tax relief ($5.0 billion), (b) new funds for state housing programs (2.1 billion), and (c) additional aid to local governments and districts ($0.7 billion). Measure would have a negative impact on state finances of up to $0.9 billion. New revenues not subject to state and local appropriation limits, thus increasing the amount of spending allowed under the limits by $0.9 billion (state) and $3.0 billion (local). These amounts would grow in subsequent years.

Proponents

Bill Zimmerman Zimmerman, Fiman And Dixon Political Consulting And Communications, 1250 Sixth Street, Santa Monica, California 90401 (213) 451-2522

Date

6-2-1989

Document Type

Initiative

Qualified

Failed to Qualify

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