As most of you know, Proposition 13 limits annual property tax increases to a maximum of 2% each year and continues to save California homeowners money ever since it was overwhelmingly passed by voters in 1978.
Unfortunately, proposals to weaken Prop. 13 protections are on the table this year. Under the ‘split roll’ proposal, Prop. 13 would remain in place for homeowners, but would be eliminated for many commercial properties; allowing their property taxes to increase beyond the 2% cap annually based on inflating market values.
In reality, it won’t be just business owners who are forced to pay. Even if ‘small businesses’ are supposedly exempt, the large corporations that own commercial buildings that house local shops, factories, stores and restaurants probably won’t be. Any property tax increase would be passed onto the leaseholder through rent increases, and then to consumers through higher costs for products and services – in other words – to all of us.
California gas, sales, income and business taxes are already among the nation’s highest, while our property tax rates are somewhere in the middle. With a $15 billion state surplus, do we really need to pick the pockets of consumers and small businesses?
Looking for an affordable apartment? Good luck. Split roll will encourage cities to OK commercial developments over lower taxed housing developments. Just starting out in life and looking for a good job? Good luck with that too. Split roll will increase business operating costs and drive more businesses and jobs out of California. Split roll will harm entrepreneurs, consumers, employees, employers – in short – EVERYBODY!!
Rest assured, along with the Howard Jarvis Taxpayers Association and other taxpayer advocacy groups, I will continue to fight for Prop. 13 to protect the pocketbooks of all Californians.