Vote No on Prop 15
READ THE INITIATIVE AND UNDERSTAND THE FACTS ABOUT PROP 15. VOTE NO.
California is in the midst of an unprecedented economic crisis. At the outset of this crisis, COVID-19 caused a number of small family businesses to close and continues to threaten the ability of more small businesses to continue to function. As if this was not bad enough to cause enormous concern to families throughout the state, yet another danger is on the horizon for small businesses.
Prop 15 on the November ballot would cause the largest property tax increase in state history at $11.5 billion per year during the worst recession in the state’s history, the absolute worst time to introduce a new tax.
Unless defeated by voters, the measure destroys long-standing Prop 13 protections that have kept property taxes affordable and provided every taxpayer that buys a home or operates a business with certainty that they can afford their property tax bills in the future. Prop 15 repeals these protections for business property by requiring reassessment at current market value at least every three years.
The chief arguments in support of Prop 15 are illusory and lack any evidentiary basis. The first argument is that the tax increase goes to fully support education. It’s a compelling argument when you overlook the facts. Simply read the initiative and it will tell you that the 70% of the revenue will first go to the state general fund, then local governments and the remaining pennies on the dollar go to education. Its text clearly states that education funds are only paid out after transferring the necessary funds to pay administrative costs, backfilled taxes to the state General Fund, refunds for appeals, and the local government share of funding. Far from putting schools first, Prop 15 actually makes education its lowest priority for new tax revenue.
Moreover, K-12 funding has been increasing to all-time highs. Data from the Legislative Analyst’s Office shows total K-12 revenues grew from $10,780 per Average Daily Attendance in 2011-12 to $17,423 in the recently signed budget. That’s 80% more per student than at the low end following the recession eleven years ago. The text of Prop 15 contains zero reforms and zero requirements that any of the new tax money be used to improve school performance, reduce class size, or expand science, art, music and after-school programs. Not one dollar is required to be spent on our children. Instead, the new money can be spent on administrative staff and outside consultants.
The additional argument is that Prop 15 only makes large corporations “pay their fair share”. Simply read the initiative. Prop 15 causes equal havoc across the board irrespective of the size of the business causing any size business to have to assess job losses. Prop 15 contains a direct/indirect ownership aspect many people miss and which directly impacts small businesses.
The proposition revokes the exemption for property worth less than $3 million if any direct or indirect owner of the property in question also has a direct or indirect ownership interest in other commercial or industrial property with an aggregate of $3 million.
For example, a $50,000 building can be reassessed if a 1% partner that owns the building is also a partner in owning other commercial/industrial property with an aggregate value exceeding $3 million in California.
Prop 15’s higher property taxes will cause rents to skyrocket for small businesses and the cost of living to increase for all Californians.
That’s why small businesses, farmers, social justice organizations, and taxpayer advocates across California oppose this massive tax increase.
RYAN P. KLOBAS
Chief Executive Officer
Napa County Farm Bureau