State lawmakers look at proposed property tax increase

State lawmakers are considering a proposal to increase property taxes by $500 million for property owners in states such as California, Nevada, New York and Virginia.

The proposal, to be considered by the State Legislature’s Joint Finance Committee on Monday, would raise property taxes in the counties of Los Angeles, Orange, San Bernardino and Riverside by $100,000 per year for the next five years.

The increases would be in addition to a 5 percent statewide property tax hike that was proposed by Republican Governor Gavin Newsom.

A new state tax would then be imposed on every $1,000 increase in a single-family home.

The measure also includes a 5.9 percent tax increase on commercial and industrial properties.

The California State Senate on Monday approved the measure, which is scheduled to be discussed in a committee meeting next week.

A state tax increase is a popular proposal, and the proposal could be seen as a response to the state’s recent recession and a growing number of property owners who want to pay more in taxes.

“We know we are facing some significant challenges in the state and it’s important that we look at our tax system and make adjustments that will be beneficial to the people of California,” Assembly Speaker Mark Leno (D-San Francisco) said in a statement.

“I’m confident the Joint Finance committee will consider this proposal and will be able to pass it with broad bipartisan support.”

The proposal would affect a larger portion of the state than the proposed statewide property and income tax increase, and would increase taxes on nearly 4.6 million Californians, according to the Joint Budget Office.

About a third of the estimated 2.3 million Californian homeowners are in counties in which property taxes are higher than the statewide average.

The state has more than 100,000 single-parent households and nearly 200,000 two-parent families, according the California Association of Counties.

The proposed property and property tax increases would impact the median household income in the county, which would be about $60,000 higher than it would be without the increases, according a 2016 report by the California Institute for Taxation and Economic Policy.

The nonpartisan Legislative Analyst’s Office estimated the proposed property taxes on Californians would raise an additional $1.2 billion over five years, an amount that would exceed the current statewide property taxes.

California has long struggled with an over-reliance on property taxes, and lawmakers have been grappling with the issue since the state legislature passed a tax hike in 2015, which was supposed to bring the state to a $3.8 billion surplus by 2028.

The property tax measure was originally introduced in 2015 and was referred to the committee, but was later dropped.