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.”
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.