Attorneys from the San Leandro-based law firm Remcho, Johansen & Purcell LLP filed title and summary language for the proposed 2010 ballot initiatives earlier this month. They are the "Protect Homeowners and Close Corporate Tax Loopholes Act" and the "Education and Taxpayer Fairness Act." In order to qualify as a potential constitutional amendment for the November 2010 ballot, each initiative would have to garner 700,000 signatures by the spring.

The latter initiative would add 0.55 percentage points to the current tax rate of 1.0% of the assessed value upon a sale, with the extra revenue diverted to a fund for K-12 schools, community colleges and state universities. The former would require that all non-residential, non-public properties have their fair market value assessed every three years, beginning with properties that have gone the longest between appraisals. It would also exclude $1 million in personal property tax for businesses "in order to give small business owners immediate tax relief," double homeowners' property tax exemption and increase the tax credit for qualified renters.

The initiative claims that the lack of more frequent fair-market-value appraisals is a "gigantic loophole" for commercial properties that places the burden of paying for things like police and fire services more heavily on homeowners. "Unlike single-family residences, commercial buildings produce income for their owners," the initiative finds. "It makes sense, therefore, to tax commercial real property at a higher rate than private homes. Furthermore…it makes sense…to reassess commercial real property at current market value and use the increased revenues to restore vital services to our seniors and health care to our kids, protect funding of public safety, and also improve the funding of California's public schools."