Commercial Real Property Taxation. Reassessment, Exemptions, And Revenue Distribution. Initiative Constitutional Amendment.

Amends the California Constitution to require annual tax reassessment of the full cash value of commercial and industrial real property. Exempts any taxpayer's first $500,000 in personal property from taxation. Requires that tax proceeds resulting from this measure be distributed to cities, counties and schools. Excludes real property used for commercial agricultural production and real property otherwise exempt by law. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Annual increase in net local property tax revenues of approximately $2.8 billion resulting from assessment of certain commercial real property at fair market value. This would provide additional revenues to local governments ($1.7 billion) and schools ($1.1 billion). The school revenues would reduce state education spending by a commensurate amount. Annual decline in state income tax revenues of approximately $150 million from increased property tax deductions.