California Building Industry Association joins coalition opposing the largest property tax increase in state history
SACRAMENTO, CA – In November, California voters will consider Prop 15, the $12.5-billion property tax increase that will distort local zoning decisions and make the housing crisis even worse. Prop 15 will ultimately decrease housing supply—driving rents and home prices higher as local governments are incentivized to maximize local revenue by approving higher-taxed commercial and industrial developments over affordable housing.
Prop 15 will raise property taxes on commercial and industrial property by requiring reassessment at least every three years. The higher property tax revenues generated by business properties will drive local governments to favor commercial and industrial development over residential construction. Ultimately, Prop 15 will reduce the supply of housing for Californians, especially the state’s most needy, and lead to higher rents and home prices.
Builders from across the state, including the California Building Industry Association, recently announced their opposition to Prop 15.
“California is experiencing a housing affordability crisis. Millions of families are recently unemployed and at risk of being homeless. Proposition 15 makes the current crisis worse by discouraging new home construction at the worst possible time,” said Dan Dunmoyer, president and CEO of the California Building Industry Association. “If California wants to resolve the state’s housing affordability crisis, the first step must be to reject Prop 15.”
“It’s hard enough to find affordable housing in California now. Discouraging new homebuilding will only make the problem worse. We are looking at a huge cost of living increase unless voters defeat Prop 15,” added Reverend Jonathan Moseley, western regional director and president of National Action Network LAX.
“Lack of affordable housing is a major driver of poverty across California. If voters want solutions on the housing crisis, they must vote no on Prop 15,” said Debora Allen, board director of the San Francisco Bay Area Rapid Transit.
Read more about the flaws in the $12.5 billion-a-year property tax hike here.