California housing advocate calls for overhaul of outdated property tax system

During the recent Board of Equalization (BOE) meeting held on April 29, 2025, discussions centered on the pressing need for reform in California's property tax system, particularly regarding affordable housing and business property taxation. The meeting highlighted the polarized nature of the current debate, with a call for more constructive dialogue to address the challenges facing the housing industry and local governments.

One of the key points raised was the impact of speculation and land use on the availability of affordable housing. A board member emphasized that without addressing these issues, California would struggle to meet its housing needs. The discussion underscored the importance of engaging the business community in finding solutions that benefit both housing development and local revenue generation.

The board also examined the complexities surrounding property tax assessments, especially in rural counties where land values are significantly lower. The conversation pointed to the need for a legislative solution to the current property tax system, which many agree is outdated and riddled with loopholes. A proposal was made to reconstitute a task force that would explore how changes in ownership of commercial properties could trigger reassessments, potentially generating billions in revenue for cities, counties, and schools.

The board member suggested that a cumulative change of ownership threshold—similar to past legislative efforts—could help modernize the system and ensure fair taxation. This approach aims to close loopholes that allow properties to remain under assessed values indefinitely, thereby addressing disparities in the property tax system.

As the meeting concluded, the board recognized the importance of continuing this dialogue and taking actionable steps towards reform. The discussions reflect a broader commitment to improving the housing situation and ensuring that local governments have the necessary resources to serve their communities effectively. The BOE's next steps will be crucial in shaping a more equitable property tax framework that meets the needs of all Californians.