Property Tax Increase Initiative (Conway Collis), Lifting Children and Families Out of Poverty Act
A new statewide, Constitutional Amendment Ballot Initiative
A new statewide, Constitutional Amendment Ballot Initiative has received a Title and Summary by the Attorney General and the proponents are out collecting signatures necessary to qualify it for the 2016 General Election Ballot. This measure enacts a surcharge from 2017-18 through 2036-37 on most properties in the state valued (for tax purposes) at above $3 million. This surcharge would raise between $6 billion and $7 billion in new revenues in 2017-18, with revenue amounts in future years generally expected to grow over time (in nominal terms). There is an oddly drafted exemption from the surcharge for rental housing where the total assessed value for the property divided by the number of rental units is less than the maximum per unit rental value. The maximum per unit rental value means $2,000,000, adjusted upward each year by the percentage increase, if any in the California CPI. The measure deposits these revenues into a new special fund—the Lifting Children and Families Out of Poverty Fund—and would dedicate the revenues to several programs intended to reduce poverty. These are: (1) the designation of certain areas of the state with high concentrations of poverty as “California Promise Zones” to facilitate coordination of anti-poverty efforts; (2) a significant expansion in home visiting programs that provide prenatal and early childhood services; (3) a significant expansion in government-subsidized child care; (4) the creation of a new sector-specific job training and tax credit program; (5) an increase to cash grants provided through the California Work Opportunity and Responsibility to Kids (CalWORKs) program; and (6) a supplement to the California Earned Income Tax Credit (EITC), a personal income tax (PIT) credit for low-wage workers.
This effort will impact manufactured housing/mobilehome communities with a state value (for tax purposes) of $3 million or more. The effort is being funded by the Daughters of Charity and Conway Collis’ Grace organization, a nonprofit 501c3 corp. Copies of the Legislative Analysist’s review of the initiative and the text of the initiative are available on WMA’s Website. A coalition of property owners is opposing the initiative called Californians to Stop Higher Property Taxes. WMA is a member of the coalition and will be contributing to the effort. Below is a short summary of its impact on property owners.