No On Prop 15
What Every Business/Organization Must Know About Prop 15, the $11.5 Billion-A-Year Property Tax Hike on the November Ballot
California is in the midst of an unprecedented economic crisis, and yet another threat is on the horizon for small businesses.
Prop 15 on the November ballot will be the largest property tax increase in state history at $11.5 billion per year.
Unless defeated by voters, the measure shreds long-standing Prop 13 protections that have kept property taxes affordable and provided every taxpayer that buys a home or operates business with certainty that they can afford their property tax bills in the future. Prop 15 repeals these protections for business property by requiring reassessment at current market value at least every three years.
Prop 15’s higher property taxes will cause rents to skyrocket for small businesses and the cost of living to increase for all Californians.
That’s why small businesses, farmers, social justice organizations, and taxpayer advocates across California oppose this massive tax increase.
Why should everyone be concerned about Prop 15?
- Threatens jobs. An estimated 120,000 jobs will be lost during a time of record unemployment.
- Raises prices for consumers. Higher taxes on businesses will ultimately get passed on to consumers in the form of increased costs on just about everything people buy and use, including groceries, fuel, utilities, day care and health care.
- Hurts small businesses. Prop 15 does nothing to prevent higher property taxes from being passed to small business tenants through higher rents.
- Lacks accountability. Sacramento politicians can divert the new local government tax money for other purposes, just like they have done with the gas tax.
How you can help defeat Prop 15:
We need your help to defeat the largest property tax increase in California history. Join the fight by supporting the Industry Defense Fund.
Support BOMA/GLA's Industry Defense Fund
Every year in every city and state, lawmakers introduce short-sighted legislation that threaten your building operations and profits. BOMA/GLA’s advocacy staff and BOMA California’s team of expert lobbyists work around-the-clock to protect your building from harm by monitoring legislation and policy in California. This is done through strategizing with lobbyists, testifying before legislative committees, educating lawmakers, and running grassroots campaigns.
To ensure adequate funds are available for unbudgeted advocacy challenges at the local and state level, BOMA/GLA maintains a member driven Industry Defense Fund (IDF) to support special advocacy efforts. These efforts can be in response to legislation, regulatory rule making, or litigation that threatens to have a substantial impact on BOMA/GLA members.
How Will This Impact You?
The "Split Roll" ballot initiative, which is on California ballots this November, would be a $12 billion tax increase on commercial real estate by removing Proposition 13 protections on our industry. What does this mean for your buildings though? We have developed an interactive Split Roll guide, CLICK HERE to better help you understand what this tax increase looks like on different types of buildings. It also includes a calculator where you can input the current value of your building to understand how much your taxes would go up in 2021 if this passes.
IDF Support Leads to Success
When confronted with these advocacy crises, the IDF allows BOMA/GLA to give a voice to the commercial real estate industry and helps BOMA/GLA achieve critical advocacy successes. As an example, the IDF was used in 2011 to defeat AB 350 which sought to mandate that whenever a janitorial company, security guard company, food-service company or other building service company won a new contract, it would be required to hire the employees of the previous, now-ousted company. By mandating who a business must hire – even if it came at the expense of their current workforce – AB 350 would have represented an extreme government intrusion into the private sector, and it would have hobbled the competitiveness of many service contractors.
Help Defeat Split Roll!
Currently, the IDF is being used to stop an attempt to end Proposition 13 for commercial owners, drastically raising property taxes. BOMA/GLA, in cooperation with other associations around the state, has already started a media campaign to prevent a Split Roll Tax by targeting voters and legislators. Spending a relatively small amount of money now will save thousands of dollars for your building in the future.