CA SCA5

Requires commercial and industrial properties to be assessed at fair market value beginning with the 2018-19 fiscal year, while preserving Proposition 13 protections for residential and agricultural properties.

Exempts up to $500,000 of tangible personal property (equipment and fixtures) per taxpayer from taxation, eliminating business property taxes for approximately 90 percent of California businesses.

Establishes the Local School and Community College Property Tax Fund to distribute new property tax revenues from commercial and industrial property reassessment, with 89 percent to K-12 schools and 11 percent to community colleges, allocated based on enrollment and supplemental funding for low-income students and English learners.

Provides a five-year exemption from taxation for increases in assessed value exceeding 25 percent for small business owner-operators with properties under $3 million fair market value.

Creates mandatory public disclosure and annual audit requirements for all local agencies receiving new revenues, prohibiting funds from being appropriated or transferred for purposes other than those specified.