Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

Prop. 13 Change of Ownership Bill in California

BOMA Position

Over the past few years, several bills in the California Legislature have been aimed at removing Proposition 13 protections from commercial real estate. Under the premise that banks and corporations are somehow “gaming” the system at a change of ownership, anti-Prop. 13 advocates have pushed forward measures that would change the law in a manner that would force re-assessment – such as every three years, or when the cumulative company stock changes hands by more than half -- for all commercial properties.
 
These efforts have failed because the case has never been made that companies purposely seek to get out of reassessment. Even the San Francisco Chronicle, when it looked into allegations made by these advocates, were stymied to find a problem, as shown in this article, “S.F. assessor seeks taxes from banks' takeovers.”
 
Again in 2013, a bill has been introduced dealing with the “Change of Ownership” issue, though it is much scaled back from the past when its author proclaimed he was seeking to “nuke Prop. 13.” Now, the bill seeks to assure that assessment happens when 100% of a company’s stock changes hands in one transaction.  Although the bill sounds very similar to current law, BOMA California is asking that tax experts analyze the bill to see how it will affect individual companies. 
 
Click here to read the bill, AB 188 (Ammiano; D-San Francisco).

Related Content