Introduced
by
To eliminate a cap on the maximum amount that tax assessors can raise the assessment of rental property due to a higher occupancy rate, if the assessment had been previously lowered as a result of a lower occupancy rate. A 2002 Supreme Court ruling held that raising these assessments faster than inflation violates the Constitutional tax cap put in place by Proposal A in 1994, which limits assessment increases to five percent or the rate of inflation, whichever is less. Note: This bill and Senate Bill 312 exempt commercial rental property from the regular property tax law, and instead subject it to a new property tax law which taxes this property at the same rate as the current law. The effect of the bills would be retroactive, requiring property owners whose occupancy increased since 2002 to pay taxes for past years.
Referred to the Committee on Finance
