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Tax Changes Proposed in Sacramento

Twenty five years after Proposition 13 changed California´s tax landscape, state lawmakers are proposing more changes.

They want to make cities less enamored of shopping centers and friendlier to new houses and apartments. Assembly Members Darrell Steinberg of Sacramento and John Campbell of Irvine want cities to send half their sales taxes to the state. In return the state will send back an equal, then growing amount of property tax money.

The lawmakers say their bill will make cities rely more on property taxes and build more desperately needed houses. City managers aren´t so sure. They fear it´s just another excuse for the state to grab cities´ tax money during hard times.