California Apartment Association

The California Apartment Association is preparing to fight a property-tax initiative that could appear on the November ballot and pose significant threats to the rental housing industry and the entire real estate community.

Referred to by proponents as the “Lifting Children and Families Out of Poverty Act,” the plan directly assaults Proposition 13 by creating a property tax surcharge on all commercial and residential properties in the state assessed at over $3 million.

Starting in the 2017-18 fiscal year, the proposal would add a 0.3 percent tax on property assessed between $3 million and $5 million; 0.6 percent on property between $5 million and $10 million; and 0.8 percent on property in excess of $10 million. The increased taxes generated would be used to fund various state poverty reduction programs.

As of last week, the measure had over 25 percent of the 585,407 signatures needed to qualify for the November ballot. The deadline to submit signatures is March 21.

Its primary backer is Conway Collis, a former member of the California State Board of Equalization. In addition to Collis, much of the funding is coming from anti-poverty groups.

CAA is working with other organizations within the real estate and business community to combat the proposal and continues to monitor the petition’s progress. Moreover, the Association is working with partners organizations to develop a plan to defeat the measure should it qualify.

Related content: 

• Proposed initiative a threat to Prop. 13: Jon Coupal (Jan. 7, Los Angeles Daily News)