Legislative Alerts

Prop. 13 - Split Roll Update - August 2018

Issue:
Prop. 13 - Split Roll Update - August 2018

Prop. 13   Split Roll Initiative

An Important Message from CBPA

   

The update is provided by the California Business Properties Association (CBPA), our legislative advocate in Sacramento . . . you will be hearing more on the industry’s effort to fight this threat to commercial real estate and how YOU can help, but we encourage you to visit Californians to Stop Higher Property Taxes NOW and sign up to receive updates. 

 

Commercial Real Estate Leaders:

 

On behalf of Rex Hime and the CBPA Board, I am passing along this update on Split Roll Property Tax.

 

On August 14th, the group of labor unions, activists and community groups that are advocating gutting Proposition 13 and creating a split-roll property tax, has submitted signatures to place the initiative before voters on the November 2020 ballot.  The activists pushing this initiative have announced that they are delivering more than 850,000 signatures to county election officials. They need just 585,407 valid signatures to qualify the measure.

 

This measure, if passed, requires immediate reassessment of all your commercial, industrial and retail properties, with regular reassessments every three years after that. Your ability to know what your property taxes will be will vanish, and you will be at the mercy of double-digit increases like we see in other states that don’t have the protections of Proposition 13 which you currently enjoy.

 

Signs that the effort was struggling vanished once Facebook infused the effort with a $500,000 political donation which allowed them to pay for signatures.

 

Below is a press release sent out by our coalition commenting on this news.  Rex Hime, President and CEO of CBPA, is part of the leadership of Californians to Stop Higher Property Taxes, the group that is pushing back against these efforts.  More information can be found at their website.

 

Best,

Matthew Hargrove

Sr. Vice President, Government Affairs

California Business Properties Association

 

The language of the Split Roll Initiative can be found by clicking here.

 

FOR IMMEDIATE RELEASE 

August 14, 2018

 

CONTACT: Brooke Armour

(916) 553-4093

 

(SACRAMENTO)— A broad-based coalition of business and taxpayer advocates today announced they are already organizing to fight against the multi-billion-dollar split-roll tax increase, which may appear on the November 2020 ballot. 

 

“California currently has a more than $17 billion budget surplus. State and local governments are taking in record revenue. And yet somehow both the state and local governments are facing significant deficits in the near future. Hardworking Californians have seen their tax burden increase, including from the state’s gas tax increase last year. In the past eight years, local governments have enacted 802 general and special taxes,” said Rob Lapsley, president of the California Business Roundtable and part of the coalition formed to fight the measure. 

 

Property tax revenue continues to skyrocket. In 2017, businesses and residents paid $65 billion in property taxes. Since Prop. 13 passed in 1978, property tax revenue has increased 1,000 percent. In just the past 10 years, it has increased 50 percent. Even with Prop. 13, the state has seen property taxes grow at a faster rate than personal income since 1979.

 

“This is yet another attack on the longstanding taxpayer protections in Prop. 13. Special interests continue to push for new and higher taxes to pay for their out-of-control pensions, which have already directed existing tax revenue away from classrooms and other state priorities,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association. “While the election may be more than two years away, we have already begun to build the campaign necessary to defeat this measure and preserve the taxpayer protections in Prop. 13.” 

 

Even the nonpartisan legislative analyst cautioned that this measure will increase the costs on businesses, which would force some to change hiring practices or move out-of-state.

 

“California already has the worst climate for business and job creation in the country. A split-roll property tax will just increase pressure on many businesses that are already finding it hard to make ends meet,” concluded Rex Hime, president of the California Business Properties Association. 

 

The broad-based coalition includes the California Chamber of Commerce, California Taxpayers Association, California Business Roundtable, Howard Jarvis Taxpayers Association, California Business Properties Association and a growing list of regional and local business and taxpayer advocates. 

 

Split-roll proponents today began turning in signatures to qualify the measure for November 2020.