California has the highest income tax and nearly the lowest commercial property tax in the USA. A lot of the commercial property owners are out of state, or are local but are owned by out of state investors.
Taxing them at 1% of actual value, the same as new residential purchases, is fair. And if the state eventually needs more money, this is the best possible source.
Henry George proved more than 100 years ago that property taxes are the most efficient. You tax cars, people make less cars or switch to cheaper ones. You tax income, people work less or hide income. But taking commercial property from before 1975 and taxing it on its actual value does not produce a similar avoidance deadweight loss, not unless you think someone who abandon or destroy commercial property.
