The National Federation of Independent Business/California released the following statement today about the defeat of Senate Bill 935 (Leno) and Senate Bill 1021 (Wolk) yesterday:
“Small business thanks our elected officials for preventing these two bills from passing,” said John Kabateck, NFIB/CA Executive Director. “Our leaders realized that now is not the time to increase minimum wage or make it easier to raise property taxes on small businesses, and knowing that these bills will not move forward is huge relief for small business owners.”
“We look forward to working with those in the Legislature on policies that support business and encourage them to expand and create jobs in their communities,” Kabateck continued. “Reducing regulations, taxes and barriers for growth are all top priorities for our members.”
SB 935 would have increased California’s minimum wage to $13.00 per hour in the next three years and pave the way for future increases in the minimum wage depending on future inflation. A recent NFIB study showed that depending on the future rate of inflation, the passage of SB 935 could have resulted in more than 323,000 jobs being lost in California over a ten-year period and a reduction in real output of $224 billion.
SB 1021 (Wolk) will have allowed more than 1,000 California school districts to impose unlimited tax increases on commercial property owners - potentially at a higher rate than residential property. Under the bill, school districts could split parcel tax assessments within a district based on one or more rates based on things like square footage and usage. And they could do so as long as the same tax rate is levied on all properties within the same classification of how a parcel is used.