Category: Press Releases

SACRAMENTO, CA – Across the state, small businesses are pleading with Governor Newsom to oppose Proposition 15, the largest property tax increase in California history. Yesterday, Patrick Mulvaney, chef and owner of Mulvaney’s B&L, was the latest small business owner to publicly urge Governor Newsom to oppose Prop 15.

Read excerpts from Mulvaney’s opinion piece, “Governor Newsom, Just Say No to Prop 15,” below:

“…I may own my restaurant, but I don’t own the building, nor do a majority of Sacramento restaurateurs. That’s why I am so worried about Proposition 15 and its impact on small businesses like mine…

“During the past five months of the COVID-19 pandemic, I’ve furloughed most of my employees and watched many of my restaurant chef-owners do the same. A number of my restaurant colleagues have called it quits, unable to weather the tremendous storm caused by the pandemic. More permanent closures are on the way.

“As anyone who knows me will attest, I am not one to interject myself into the political arena, preferring instead to wax political from the other side of the bar. But as I take stock of my business, and the many who are struggling alongside me to keep the lights on, keep what’s left of our employees working and pay the rent, I feel compelled to speak out and urge Governor Newsom to stand with the thousands of small businesses and restaurants that are hurting and oppose Prop 15…

“Like many restaurant owners, the B&L pay’s rent under what’s called a ‘triple net lease.’ That means in addition to the rent, I have to pay my portion of the property tax bill, insurance and maintenance costs associated with the building. I hear the arguments proponents make about how small businesses are exempt, that it’s the “big corporate owners” who will pick up the tab. Nothing could be further from the truth for me and thousands like me in California. I’m not the only one who’s going to get stuck paying the $11.5 billion tab each year.  

“Because Prop 15 raises property taxes, and those higher taxes get passed on to small business tenants like me, we have to choose between passing those higher costs on to consumers, reducing staff or going out of business. And it doesn’t stop with me. The farmers I get my produce from, the dairymen and women who provide me with milk, eggs and butter and the ranchers who provide me with the beef, pork chops and chicken we serve every night are all a part of the supply chain who will be impacted by Prop 15’s tax increase…

“Now is the time for the legislature and Governor Newsom to roll up their sleeves and find a balanced solution to right our state’s fiscal affairs without further breaking the backs of small business. In order to return California’s small businesses to full strength so that they create jobs, generate income and pay taxes to get our economy working again, Governor Newsom should do the right thing and oppose Prop 15. To do otherwise will only serve to get in the way of our recovery and make things worse.”

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ABOUT NO ON PROP 15 – STOP HIGHER PROPERTY TAXES AND SAVE PROP 13
No on Prop 15 – Stop Higher Property Taxes and Save Prop 13, a bipartisan coalition of homeowners, taxpayers, and businesses, has been fighting to protect Prop 13 and oppose a split-roll property tax for more than a decade. For more information, please visit www.NOonProp15.org.

Fire-Suppression Equipment, Improvements to Bolster Access for Disabled Would be Taxed Under Prop 15; List of Unintended Consequences to Largest Property Tax Increase Grows

SACRAMENTO, CA – The list of “unintended consequences” of Proposition 15, the largest property tax in California history, continues to grow. Not only will this measure tax the trees that grow our food and large-scale solar facilities needed to help the state meet its climate goals, but this poorly drafted measure also increases taxes for businesses investing in critical fire suppression equipment and improvements to ensure access for the disabled.

“In an attempt to fix what they call a ‘drafting error,’ union-backed lobbyists drafted a blatantly unconstitutional, last-minute bill to exempt solar from being taxed,” said Rex Hime, president and CEO of the California Business Properties Association. “Unfortunately, it seems like other critical services, such as installing fire sprinklers in businesses and making shopping more accessible for disabled Californians, did not get the same special treatment and will trigger reassessment should Prop 15 pass.”

According to the California Assessor’s Association, the Legislature’s last-minute bill to exempt solar from Prop 15’s higher taxes is unconstitutional. Under Prop 13, approved by 65% of California voters in 1978, real property is not reassessed at fair market value unless it changes ownership or is “newly constructed.” But, Prop 15 would require that all commercial and industrial property “that is not otherwise exempt” (emphasis added) will be assessed at its full cash value as of January 1, 2022.

Unless Prop 15 is defeated, the concept of “new construction” and “change of ownership” are eliminated as those terms are applied to commercial and industrial property. As a result:

• Fire suppression systems and fire-related egress improvements will be taxed. Following Prop 31’s passage in 1984, the Legislature passed what is now Revenue & Taxation Code section 74, which excluded these additions and structural improvements from property taxation until such time as the property changed ownership, at which time their value would be captured in the “full cash value” of the property.
• Improvements to make commercial and industrial property more accessible to persons with disabilities will similarly be taxed. Following Prop 177’s passage in 1994, the Legislature passed what is now Revenue & Taxation Code section 74.6, which excluded these additions and structural improvements from property taxation until such time as the property changed ownership, at which time their value would be captured in the “full cash value of the property.”

“The practical effect of Prop 15 will mean that disabled access improvements and fire-suppression systems will be subject to property tax reassessment at their full market value as of January 1, 2022. These original measures were passed to create an incentive for people to invest in their property to make them more fire-safe and to comply with the Americans with Disabilities Act. Prop. 15 eliminates those incentives and in fact punishes people for making those investments,” added Tom Bordonaro, Jr., county assessor for San Luis Obispo County. “Call it an unintended consequence, a drafting error or intentional, Prop 15’s tax impact will be broad, deep and harmful throughout all of California.”

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ABOUT NO ON PROP 15 – STOP HIGHER PROPERTY TAXES AND SAVE PROP 13
No on Prop 15 – Stop Higher Property Taxes and Save Prop 13, a bipartisan coalition of homeowners, taxpayers, and businesses, has been fighting to protect Prop 13 and oppose a split-roll property tax for more than a decade. For more information, please visit www.NOonProp15.org.

Zuckerberg’s support for $11.5 billion property tax increase will “disproportionately hurt vulnerable communities”

SACRAMENTO, CA – A coalition of social justice organizations including the California State Conference of the NAACP, California State National Action Network, California Black Chamber of Commerce, California Hispanic Chambers of Commerce, California Asian Pacific Chamber of Commerce, and United Latinos Vote wrote an open letter to Mark Zuckerberg, founder of Facebook and co-founder and CEO of the Chan Zuckerberg Initiative, criticizing his recent donations to the Yes on Proposition 15 campaign. Prop 15 would increase property taxes by $11.5 billion a year and disproportionately hurt minority-owned small businesses, all while increasing gentrification in the “vulnerable communities” Zuckerberg aims to help.

To date, Zuckerberg has donated more than $6.1 million through the Chan Zuckerberg Initiative to help pass the largest property tax increase in California history.

Read excerpts from the letter below:

“As leaders of California’s social justice communities and with a deep understanding of the challenges facing the populations that now constitute a majority of the state’s population, we are disappointed to see you committing millions of dollars of your vast wealth to help pass a measure to substantially raise taxes on small, minority-owned small businesses throughout California. Unlike Facebook, restaurants, dry cleaners, nail salons and other small businesses can’t operate right now and many may never open again. The last thing they need is a billionaire pushing higher taxes on them under the false flag of social justice…

 “Data analyzed by the Stanford Institute for Economic Policy Research found a 41 percent drop nationwide in the number of Black business owners between February and April 2020. Latino-owned businesses sunk by 32 percent and Asian-owned businesses decreased by 26 percent. Despite these staggering numbers, Prop 15 will raise rents on the surviving businesses during an unprecedented economic crisis…

“Increasing property taxes on small businesses by up to $11.5 billion a year will hurt female- and minority-owned businesses the most and, according to studies by the California State Conference of the NAACP and Berkeley Research Group…

“Prop 15 will provide a huge financial incentive for local governments to approve business projects to replace existing housing so they can receive higher property tax revenue. Perhaps that’s your rationale for supporting the initiative. Gentrification may seem like “progress” to you, but for our communities throughout California, gentrification is real and a growing problem. Prop 15 will push small minority- and immigrant-owned businesses out of our communities when they can’t afford Prop 15’s higher property taxes…

 “We realize that you have not been negatively impacted economically by COVID-19 but millions of Californians, including a disproportionate number in our communities, have. So, for one of the world’s wealthiest individuals to support the largest property tax increase in California history – a proposed tax increase that will be passed on by small businesses to consumers throughout the state in everything they buy – is deeply troubling.

 “We strongly encourage you to instead focus your energies and money on eliminating hate speech that permeates Facebook…

 “While you have the right to spend your vast Facebook wealth as you see fit, using it to punish small businesses fighting for a fraction of the success you’ve had is just wrong.”

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ABOUT NO ON PROP 15 – STOP HIGHER PROPERTY TAXES AND SAVE PROP 13
No on Prop 15 – Stop Higher Property Taxes and Save Prop 13, a bipartisan coalition of homeowners, taxpayers, and businesses, has been fighting to protect Prop 13 and oppose a split-roll property tax for more than a decade. For more information, please visit www.NOonProp15.org.

SACRAMENTO, CA – On Sunday, the Southern California News Group published an opinion piece from Mike Roos, former Democratic Speaker Pro Tempore of the California State Assembly and president of Southern California Leadership Council, urging voters to reject Proposition 15, the largest property tax increase in California history. Roos argues Prop 15’s $11.5 billion-a-year property tax increase would impede economic recovery, result in higher rents for small businesses, disproportionately impact minority-owned small businesses, and increase the cost of living while many are unemployed and struggling to make ends meet.

Read excerpts from Mike Roos’ opinion piece, “Southern California’s future depends on defeating Proposition 15” below:

“…Unless rejected by voters, Prop. 15 and the $11.5 billion tax hike it imposes will prove to be another impediment for unemployed workers counting on an economic rebound in the not-too-distant future. Prop. 15 will add another significant burden to small businesses who already face an existential crisis.

“Worse still, the tax increase’s cost will be passed along to consumers, as we’ll be forced to pay more for basic necessities like groceries, gasoline, diapers and clothing.

“Southern California’s future – and with it the state’s recovery – relies on a strong economy that creates jobs for workers and allows small businesses to confidently re-open and engage in commerce. Prop 15’s massive tax increases would significantly undermine these goals.

“It’s for these reasons that the Southern California Leadership Council (SCLC) opposed Prop. 15.

“The SCLC is a nonpartisan, policy-focused organization made up of members that include more than three dozen presidents and CEOs of top Southern California companies, and elected officials, including every former California Governor elected in the last four decades.

“Earlier this year, the Southern California Leadership Council concluded that Prop. 15 falls far short of its promises and will inflict real harm on consumers, farmers and communities of color. It’s a flawed measure that voters should reject in November…

“While Prop. 15’s proponents talk about large companies paying the tax increase, the truth is that minority-owned small businesses will be disproportionately impacted, according to a report by the California NAACP. These businesses are more likely to lack the cash reserves needed to weather downturns and to afford increased costs that are inextricably linked to tax increases…

“Ultimately, the real losers would be every Californian. Higher taxes to the tune of $11.5 billion annually will result in higher costs of living. Prop. 15 could raise a family’s cost of living by up to $960 per year—the difference between making rent or not for many families.

“A vital part of the Southern California Leadership Council’s mission is to support policies that will improve economic vitality, job growth and quality of life for Southern California’s diverse communities. Prop. 15 jeopardizes those goals and our region’s long-term prosperity…”

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ABOUT NO ON PROP 15 – STOP HIGHER PROPERTY TAXES AND SAVE PROP 13
No on Prop 15 – Stop Higher Property Taxes and Save Prop 13, a bipartisan coalition of homeowners, taxpayers, and businesses, has been fighting to protect Prop 13 and oppose a split-roll property tax for more than a decade. For more information, please visit www.NOonProp15.org.

Numerous “Wildly Dubious Claims” Cited in Court Filing by Prop 15 Opponents

SACRAMENTO, CA – Citing numerous “wildly dubious claims,” opponents of Prop 15, the largest property tax increase in California history, filed suit today in Sacramento County Superior Court seeking a Writ of Mandate by the court to amend or delete a number of factually incorrect or misleading statements that the measure’s proponents included in their ballot argument and rebuttal. Proponent statements alleging Prop 15 “exempts all residential properties,” “cuts taxes for small businesses” and “gives local communities desperately needed resources” were specifically cited as inaccurate in the lawsuit.

“Voters have a right to know that Prop 15 will not retain full Prop 13 protection for all homeowners, that there is no small business exemption in Prop 15 and it will not cut taxes for most small businesses, which is why we have asked the courts to delete a number of claims that will mislead the public,” said president and CEO of the California Hispanic Chambers of Commerce Julian Canete, the Petitioner who filed suit against Prop 15 proponents. “Prop 15 is the largest property tax increase in state history and voters deserve to know exactly what they’re voting for and who will pay for the increased costs. The courts have ruled repeatedly that the ballot pamphlet cannot be used as a vehicle to communicate false or misleading facts to voters, which is why we ask the court to hold proponents to a basic standard of accuracy and honesty in their statements to voters.”

In addition to falsely claiming that Prop 15 will cut taxes for small businesses, the proponents falsely claim that Prop 15 will give “local communities desperately needed resources.” However, according to California’s independent Legislative Analyst’s Office review of Prop 15, “Not all governments would be guaranteed new money. Some in rural areas may end up losing money because of lower taxes on business equipment.” In its written report and testimony to the Legislature earlier this year, the California Assessors’ Association explained that a number of counties, as many as 21 according to some experts, could be net “losers” unless Prop 15 is defeated.

To read the full Petition for Writ of Mandate click here.