C.A.R.'s board of directors in January voted to oppose any initiative on the November 2004 ballot that seeks to split the property tax roll by increasing the tax rate beyond 1 percent for commercial property. One of the proposed measures, the "Improving Classroom Education Act," would tax residential rental properties valued above $699,000, at a rate greater than 1 percent. C.A.R. has historically opposed "split roll" property tax proposals on the basis that any measure that treats the assessment of commercial property differently than residential property jeopardizes the protections afforded to all property owners under Proposition 13. C.A.R. also is concerned that a "split roll" could create a disincentive for cities and counties to build housing since it will generate less revenue than commercial property, exacerbating California's housing shortage.
Neither the "Improving Classroom Education Act" nor the "Investing in Quality Classrooms Act" has qualified yet for the November ballot; however, proponents are aggressively collecting signatures. C.A.R. is urging members not to sign these petitions. Their titles can be misleading because they don't reveal that property taxes will be increased.