Does Sacramento Want To "Mess" With Prop 13?
Tuolumne County Economic Development Authority Director Larry Cope remains optimistic that better times are ahead for business in the county.
Cope was Thursday's KVML "Newsmaker of the Day".
According to Cope, "Certain areas of the economy are showing improvement. Manufacturing is up in some areas. Tuolumne County is showing more immediate future promise than other counties in California.
Research shows that we are gaining and that we are in better shape than we were one year ago, two years ago and three years ago."
Cope is keeping his eye on a Assembly Bill that could have major implications on local business.
Members of the Assembly Revenue and Taxation Committee have voted on this bill which could have drastic implications on the taxes of commercial property owners.
Under Proposition 13, both residential and commercial property owners cannot be taxed over 1% of the value of their home, and the growth rate is limited to 2% per year. The only way a reassessment of a property can happen is if over 50% of the ownership changes.
AB 2492 would split the residential and commercial - so that commercial is not protected under proposition 13. Essentially, any change in ownership, however small they it may be (such as selling stock) can trigger a reassessment, resulting in much higher property taxes for companies.
According to Cope, this bill could be very bad for business both locally and throughout the state.
The intent of the Bill is to seek to rake in over $3 billion a year in new taxes directly from commercial property owners.
The "Newsmaker of the Day" is heard each weekday morning on AM 1450 KVML at 6:47, 7:47 and 8:47am.
Written by Mark Truppner