Prop 13 Reform Would Raise Taxes for Commercial and Industrial Properties

Two California state senators introduced a proposed constitutional amendment this week to overhaul what is often called the “third rail” of California politics, Proposition 13. Under the 1978 law, tax increases on property assessments are capped at 2 percent a year. Senators Loni Hancock and Holly Mitchell’s proposal would remove those restrictions from commercial and industrial properties, which they say could bring an extra $9 billion a year to local governments and schools. Forum discusses whether California is ready to reform its landmark tax law and what it would mean for businesses and the state.