If businesses lose their Prop 13 protections, homeowners will be next. Supporters of Prop 15 even admitted that this was the first step in a plan to end Prop 13 for everyone, which could mean skyrocketing property tax increases for all California homeowners every year.
Hurts Small Businesses Already Struggling from the Recession
Most small businesses rent the property on which they operate. Prop 15’s higher property taxes will mean soaring rents at a time when the federal and state government is trying to provide small businesses with rent relief to keep their doors open. With the coronavirus shutdown, economic damage, and high unemployment, California small businesses are struggling to survive. Now is not the time to raise their rents by hiking property taxes.
Drives Up Everyone’s Cost of Living & Makes Income Inequality Worse
The cost of living is already too high in California. Prop 15 will make income inequality worse by driving up the cost of living for just about everything we need and use, like food, utilities, daycare and healthcare. Higher costs will hurt minority and low-income families the most. Given the economic hardship many Californians are facing, now is not the time to raise the cost of living.
Sacramento politicians can divert the new local government tax money for other purposes that benefit special interests, just like they have done with the gas tax.
Misleading To Voters
Don’t be fooled. Schools are the lowest priority in Prop 15 with only about 30% of the new revenue going to schools. Instead, about 70 percent of the new money goes to the state and local governments to spend however they want. There are absolutely NO education reforms and ZERO requirements that any of this new tax money will be used to improve school performance, reduce class size, or expand science, art, music, and after-school programs. Instead, the new money can be spent on administrative staff and outside consultants.
We must reject Prop 15 and maintain Prop 13 protections that have kept property taxes affordable and provided every taxpayer who buys a home, farm or business property with certainty that they can afford their property tax bills in the future. Now is not the time to raise taxes and bring more uncertainty to businesses and all Californians.