Calif. bill seeks to close property tax loopholes
By CATHY BUSSEWITZ, Associated Press Writer
Sunday, May 9, 2010 at 10 a.m.
SACRAMENTO, Calif. — Democratic lawmakers are determined to close tax loopholes they say cost state and local governments hundreds of millions of dollars each year, as they search for ways to trim California's enormous deficit.
A report by the union-funded California Tax Reform Association found that the share of property tax paid on residential property has increased since two-thirds of voters approved California's landmark Proposition 13 tax law in 1978, while the share paid on commercial property has decreased.
In Contra Costa County, for example, taxes on residential properties now make up 73 percent of property taxes collected, up from 48 percent in 1978.
Democrats and unions say many corporations are using loopholes when they buy and sell properties to avoid having them reassessed and their property taxes go up.
"The system is an incredible mess," said the association's executive director, Lenny Goldberg. "People are constantly changing their share of ownerships, figuring out ways to avoid reassessment."
So, a great idea, stopping senior citizens from being forced to sell their homes due to rising value, has been corrupted by corporations, nor real surprise here. The fact that our government, and I use the term 'our' loosely, has taken so long to even begin to do something about this corruption. The Republicans are opposed to 'tinkering' with the law, again no surpise here.
Why is it so hard for government to make things right? Of course this law needs to be fine-tuned, getting rid of the 50% rule regarding ownership. Doing so will take away a property tax excemption, provide more taxes to government coffers, and regain the spirit of the law.
For details on the report, follow the link.California Tax Reform Association Report on Prop 13
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