by Katy Grimes at the California Globe
December 3, 2019
Despite California’s record budget surplus of $7 billion in reserves, the Proposition 13 “split roll” property tax ballot initiative could end up being a tax windfall for state government coffers. With the state sitting on a sizable surplus, opponents ask why the attack on businesses?
The ballot initiative, referred to as “tax reform” by proponents, qualified for the November 2020 ballot, and is currently gathering signatures.
Proponents of splitting Proposition 13, which keeps escalating property taxes in check, are also selling the initiative as “higher funding for education.” Proponents have long claimed that because of Proposition 13, public schools have been robbed of necessary revenue, and that businesses have not been paying their fair share of property taxes.
While public education would receive more funding from higher property taxes, the real outcome is that commercial property owners would be forced to pass the increased costs to tenants, opponents say. And since most of the businesses in California are small businesses, whether they rent or own, they will be hit with this tax increase.
Read more at the California Globe.