CA: Reformers want Prop. 13 loopholes filled

OC Register ^ | 4/7/04 | Chris Knap AND Hanh Kim Quach

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SACRAMENTO

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Related story - Technicality lets businesses slide

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Excerpted from above article -

Hundreds of companies use loopholes in California's Prop. 13 to avoid a property-tax reassessment when they buy a business - costing the state hundreds of millions in tax revenue every year.

When a family moves up to a larger home, avoiding a tax reassessment at market value is almost impossible. But corporations, partnerships and joint ventures can legally structure a sale to avoid a reassessment. The key is how state law defines a change in control of a company.

Over the years there have been several attempts to tighten the definitions, but they failed in the face of opposition from businesses.

geeez, those Evil businesses... depriving the state of proceeds. life is so unfair.

[stayout]

Let me turn on my trusty whiz-bank newspaper article de-coding machine.

Wait a second, wait . . . okay, there we go!

[churkle, churkle, ssss, cough, boom]

Result: whenever the phrase "teacher's union" and the phrase "tax reform" appear in the same newspaper article, the reader may assume "tax reform" can be de-coded as "higher taxes."

[Still Thinking]

No, no, no. Prop 13 was a tax revolt against the People's Republic of Kalifornia for taxes that were TOO HIGH. For some provision to constitute a "loophole", it would have to let the state collect taxes the drafters didn't foresee. Anything that reduces taxes is in keeping with the spirit of the initiative. Take an English class, commie ba$tard$!

[Arkinsaw]

PROBLEM: Businesses fleeing in record numbers due to incredibly high taxes to pay for social programs shrinking the tax base and leaving many unemployed

SOLUTION: Make the businesses that have stayed pay more taxes.

California....these folks are teaching your kids.

[goldstategop]

"Reformers?" ROFL! What they want to do destroy California's delicate economic recovery with massive tax increases on job-producing businesses. That's a solution to California's fiscal woes, alright.

[Uncle Hal]

These ideas are just another way to raise taxes. Any tax on businesses or property owners is always passed on to the consumer.

[Saundra Duffy]

Schwarznkennedy is trying everything he can think of NOT to raise taxes.