Gino DiCaro

Corporate Property Penalty Bill Defeated

By Gino DiCaro, VP, Communications

Capitol Update, Sept. 3, 2004 Share this on FacebookTweet thisEmail this to a friend

SB 17 (Martha Escutia, D-Whittier) would have imposed new reporting requirements for publicly traded companies that undergo a change of ownership. It also would have imposed new and substantial penalties for filing violations. Due to successful lobbying efforts by opponents, the bill had been on the Assembly Floor "inactive file" for 11 months. But, in the final weeks of the legislative session, Senator Escutia suddenly began trying to push the bill through the Assembly. The bill was defeated during the last week of the session.

The author has long been an advocate of a "split roll" property tax system. Her bill targeted the change of ownership of publicly traded companies. Sponsors claimed the intent of the bill was only to tighten reporting requirements to capture those that fail to report change of ownership. But in order to accomplish this, the bill would have required those companies to provide a list of shareholders and partners, upon request of the county assessors or the Board of Equalization, as part of the new reporting requirements. If one failed to submit – or even had an "incomplete" submission – penalties would have been assessed equivalent to 10 percent of the taxes on a given property.
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