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HomeMy WebLinkAboutRES NO 187-19RESOLUTION NO. ' 8 7 19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD REAFFIRMING SUPPORT FOR PROPOSITION 13 AND OPPOSING A PROPOSED STATEWIDE BALLOT INITIATIVE THAT WOULD OTHERWISE SIGNIFICANTLY ALTER THE ORIGINAL INTENT AND PURPOSE OF PROPOSITION 13. RECITALS WHEREAS, prior to Proposition 13, there were no limits on increases for property tax rates; and WHEREAS, prior to Proposition 13, local governmental agencies independently established tax rates and the total property tax rate was the composite of the individual rates, with few limitations; and WHEREAS, prior to Proposition 13, some properties were reassessed 50 percent to 100 percent in a single year, with property tax bills increasing correspondingly; and WHEREAS, prior to Proposition 13, all property owners were subject to unpredictable and unsustainable property tax increases; and WHEREAS, prior to Proposition 13, excessive and volatile increases in property taxes hindered home ownership and business development; and WHEREAS, in June 1978, California voters passed Proposition 13, know as the People's Initiative to Limit Property Taxation, which reformed the way properties were taxed statewide; and WHEREAS, under Proposition 13 fax reform, property fax values were rolled back and frozen at the 1976 assessed value level and are based on the purchase price of a property and not the current market value; and WHEREAS, under Proposition 13, property tax increases on any given property were limited to no more than 2 percent per year as long as the property was not sold; and OR;G;NAL WHEREAS, the form of property taxation under Proposition 13 apply equally to all real estate, residential, commercial and industrial, whether owned by individuals or corporations; and WHEREAS, Proposition 13 reduced property tax rates on homes, businesses and farms by about 57 percent; and WHEREAS, Proposition 13 has significantly benefited all property owners in California by making property taxes predictable and manageable; and WHEREAS, the City Council previously affirmed its support for Proposition 13 by approving Resolution No. 178-14; and WHEREAS, in October 2019, a proposed initiative measure (1 9-0008Al) was cleared for signature collection, that if becomes qualified for the statewide ballot and passed by voters, would significantly alter how property taxes are assessed on commercial and industrial properties; and WHEREAS, under the proposed initiative most commercial, industrial and certain vacant properties would be taxed based on the current market value, as opposed to the original purchase price plus the annual inflation factor as currently done under Proposition 13; and WHEREAS, this proposal is commonly referred to as a "split roll"; and I WHEREAS, the proposed initiative will further increase the costs of many businesses operating in California, increase cost for consumers, prevent companies from hiring new employees and have no accountability for how the new funds are expended; and WHEREAS, the proposed initiative will expose commercial and industrial property owners to pre -Proposition 13 patterns of property tax volatility, which will hinder economic development and negatively impact the business climate in California; and WHEREAS, a significant property tax increase, in addition to California's other high taxes would damage consumers, employers, and ultimately the economy; and WHEREAS, for over four decades, Proposition 13 has proven to be a benefit to all property owners within California and should not be amended or altered. ORIGAAL NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Bakersfield as follows: 1. The above recitals are true and correct 2. The City Council hereby reaffirms its support of Proposition 13 3. The City Council hereby opposes the proposed initiative to alter the original intent and purpose of Proposition 13 ---------- 000--------- o�,;6AK, 9q r r- OR!GAAL HEREBY CERTIFY that the foregoing Resolution was passed and adopted, by the Council of the City of Bakersfield at a regular meeting thereof held on DEC I 1 2019 by the following vote: AY COUNCIL MEMBER RIVERA, GONZALES, WEIR, SMITH, FREE WN, SULLIVAN, PARLIER NOES: COUNCIL MEMBER WMQ IN: COUNCIL MEMBER BSE ' COUNCIL MEMBER-r0P-rnc1n JL LIE DRIMAKIS, CMC CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED: DEC 112019 By / d CAVLAO gnVA KAREN GOH Mayor APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney By /z RICHARD IGER Deputy City Attorney o4�P��9ec, 4- r- v C�Ri .'N AL