The analysis shows that Prop. 15 expands the tax base by requiring commercial and industrial property worth more than $3 million to pay fair market value taxes, which would lower debt override tax rates that pay for debt service on local, voter-approved bonds.

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This benefit to homeowners comes as the property tax burden has shifted onto homeowners,  away from corporations. In 1978, according to the Legislative Analyst’s Office, residential properties accounted for 55% of assessed value, while commercial, industrial and agricultural properties accounted for the remaining 45%. By 2018, residential properties accounted for more than 72% of assessed value, while the share for commercial, industrial and agricultural properties had declined to just under 28%, according to data collected by the Board of Equalization.