A proposal to tax all real estate in the state, including condos, would be a first step toward a broader tax system.
In a proposal to the Legislature, the California Tax Commission said it would propose to apply the tax on real estate to “all property and interests in property.”
It is a “very ambitious proposal” that would raise more than $1.2 billion over a decade, the commission said.
The proposal would raise an estimated $8.2 million per year.
The California Tax Agency, which will have final say over the proposal, said in a statement it would be open to discussing the proposal with other stakeholders, but it could not be immediately reached for comment.
California currently has a property tax system that can be adjusted to cover an individual’s personal income.
However, the state tax code does not have a specific definition for property, so many families have to work out an adjustment to their personal income for the state to tax their properties.
A tax increase in the proposed bill would require that the tax be applied to all property and that it be paid annually to the state.
The commission said it was looking into the possibility of extending the current property tax rate to all properties, which it said would bring in $2.6 billion annually.
If approved, the tax would be applied as a 1.4% surcharge on income above $1 million.