Help Stop Billions in Property Tax Increases!

Proposals to overturn key provisions of Proposition 13 and increase property taxes by billions continue to be pushed as a way to solve California’s massive and chronic budget deficits. But rather than helping the state, these proposals will only hurt hardworking Californians and stall our economic recovery, which is why we are working hard to oppose them. We hope you will join us.

Specifically, some special interests and politicians want to separate business property from the protections of Proposition 13 and allow business and rental properties to be taxed at a higher rate, assessed more often, or both. These tax increases are estimated to cost Californians about $8 billion annually. Proponents try to claim that the costs of these proposals will only hit big business, but the truth is that increasing these property tax increases will harm small businesses, workers, renters and consumers the most.

Because many small, local businesses lease their offices or facility spaces, they will have to pick up a large part of the tab for the billions in new property taxes. In fact, absorbing these types of costs is required in most lease agreements.  As a result, businesses, most of which are already struggling in this economy, will have to cut wages and benefits, lay off workers and/or increase prices for consumers. People who live in rental housing, about 35 percent of Californians and many of them seniors, will pay more each month just to stay in their homes.

Two recent studies demonstrate the negative impacts of increasing property taxes in California. A study conducted by former state legislative analyst William Hamm found that increasing business property taxes by even one percent could lead to the loss of 43,000 jobs and reduced wages, and it would also result in increased consumer prices. And a study by the Center for Government Analysis found that businesses owned by women, minorities and Latinos would be disproportionately harmed if these property taxes were increased.

To help push their tax increase proposals, proponents try to claim that rental and business property owners do not pay their fair share. But in fact, the state Board of Equalization showed that in 2006-07 alone tax assessments on non-homeowner property subject to Proposition 13 were $625.8 billion higher than those on homeowner properties. And, business properties currently account for 60 percent of local property taxes. 

Californians have already had their taxes raised by $12.5 billion this year. Instead of increasing our taxes by billions more every year, special interests and politicians should instead focus on keeping state spending under control and creating budgets that live within our means, just like most families do every day.

To learn how you can join the effort to stop property tax increases, please visit www.stophigherpropertytaxes.org.