I could see how a publicly-traded REIT would argue that the property it owns changes owners every second, and in that case it makes little sense to include rental properties under Prop 13 umbrella.<p>Couple of arguments against such exemption that I can see are<p>* major real estate property owners can make a case (in court of necessary) that their property prices have not increased as much as single-family residential prices, due to the nature of the commercial market (fewer buyers, larger amounts, larger variety of the market to find decent comparables)<p>* as property tax is deductible, the revenue would just restructure - what will be collected via property tax would then be deducted at the end of the year from income tax. I guess even in that case owners would be supportive, as property taxes typically go directly to the municipalities, while income taxes are spent by some politicians in Sacramento, but then why would Sacramento be in favor of the exemption that would lower its collected revenue?