Split Roll - Definition & Meaning

The term "Split Roll" refers to a proposed change in property tax assessment in California. Under the current property tax system, established by Proposition 13 in 1978, property taxes are primarily based on the purchase price of a property and are limited to a maximum of 1% of the property's assessed value, with a maximum annual increase of 2%.

A Split Roll proposal seeks to change this system by splitting property tax assessments into two categories: one for residential properties and another for commercial and industrial properties. This would mean that commercial and industrial properties would be subject to different tax rules, potentially leading to higher property tax rates for these types of properties.

The aim of a Split Roll is to increase revenue for local governments, particularly for funding public education and other essential services, by adjusting property taxes for commercial properties while keeping residential property taxes under the existing Proposition 13 rules.

Split Roll proposals have been a topic of debate in California and have significant implications for school funding and local government finances.