CBPC: Prop 15 "Could Result in Tax Reductions for More Than 4 in 5 of California’s Small Businesses"

"The majority of small businesses would not be affected by the measure’s reassessment provisions but would benefit from the new personal property tax exemptions”

California Budget & Policy Center (CBPC) report reinforces Beacon Economics study and leading economists' letter showing that Prop. 15 would exempt small businesses, result in tax cuts

According to a recent California Budget & Policy Center (CBPC) report on Prop. 15, “the majority of small businesses would not be affected by the measure’s reassessment provisions but would benefit from the new personal property tax exemptions.” The CBPC report details how Prop. 15’s exemptions and tax cuts for small businesses “could result in tax reductions for more than 4 in 5 of California’s small businesses.” This section of the report can be seen here:

This CBPC report on Prop. 15’s exemptions and benefits for small businesses further reinforces a Beacon Economics study which found that:

• “Most claims about Proposition 15’s impacts on small businesses are unfounded ... Prop. 15 will not impact small business renters, including triple net lease tenants”

• "The burden of Prop. 15 would fall on the state’s largest corporations and highest-value properties.”

• “Commercial rents are driven by location, local market conditions, the nature of a local economy (high-wage areas are associated with higher rents), and building age and size. … For average commercial properties, reassessments do not increase rents. Office buildings have a small relationship between reassessments and rents. Reassessing a 20-year-old office building to current market value could lead to a one-time rent increase of roughly 2%.”

• “Properties owned by most small businesses are low-value and therefore shielded by the Prop. 15 exemptions.”

Additionally, a letter signed by a group of leading economists on Prop. 15 found that:

• Older companies charge market prices for their products while paying millions of dollars less in taxes each year than do their newer competitors.”

• "Bringing large business properties up to the same effective rate as paid by their competitors would largely eliminate the distortions in the system. By eliminating assessment disparities, the cost of Proposition 15 would mainly result in reduced windfall profits at the corporate level.”

• “Firms attempting to raise prices above market rates must consider the risk of losing customers to their competitors. Firms do not reduce prices out of the goodness of their hearts; instead, they set prices at what the market will bear.”

Moreover, another analysis of Prop. 15 found that only 10% of the biggest, wealthiest commercial and industrial properties would generate 92% of the revenue.

Prop. 15 is a November ballot measure that will close corporate property tax loopholes to reclaim nearly $12 billion every year for schools and critical local services – all while protecting homeowners and renters, small businesses, and agriculture. Prop. 15 will also cut business personal property taxes for small businesses.

NEW PROP. 15 ENDORSEMENTS: Firefighters, NAACP Chapters, Health Care Workers, Chambers, and more!

Diverse coalition backing Prop. 15 continues to expand and gain momentum throughout California

Firefighters

• “A ‘yes’ vote on Proposition 15 will help provide a new source of funding for fire and emergency services across the state,” said CSFA President Mike Shrout in announcing CSFA’s endorsement. “When Schools & Communities First is fully implemented, research has shown that at least $390 million in new revenue will go directly to fire districts along with the billions that will go to cities and counties that provide fire protection.”

• “Firefighters are on the frontlines of the COVID-19 pandemic and responding to a devastating wildfire season that is now the new normal for our state,” said Brian K. Rice, President California Professional Firefighters. “There simply are not enough resources to battle these growing emergencies effectively and firefighters are stretched thin. We can no longer afford corporate tax loopholes that shortchange EMS and fire protection services, that’s why we need Proposition 15.”

NAACP

• “The Unified school district and Community Colleges need the $3 to $6 billion dollars raised to reopen schools and address the achievement gap harming underserved students in moderate- and low-income communities.” – Santa Monica-Venice NAACP branch

• “What our communities need right now are investments, and what we don’t need are tax loopholes that take those investments away from our children so they can have what they need to be successful.” – Riverside NAACP Chapter

• Pomona Valley NAACP Chapter

Health care

• “At a time when so many health care workers and other first responders are putting themselves at risk to help get us all through this public health crisis, Planned Parenthood Affiliates of California urges the public to support this important measure,” said Jodi Hicks, President/CEO of Planned Parenthood Affiliates of California. “It’s unfair that a small percentage of California’s largest and wealthiest commercial and industrial property owners have for so long exploited these loopholes, even at the expense of health care providers and the patients they serve.”

• National Union of Healthcare Workers (NUHW)

Chambers of Commerce

• “The mission of the Sierra Business Council is to be an engine of prosperity, job creation and economic opportunity, not just for businesses but for communities. Our business is sustainable economic development, and we know that big corporations can more than afford to pay their fair share and contribute to a more equitable society. The Sierra Business Council is proud to endorse Proposition 15.” – Sierra Business Council

• Kern County Black Chamber of Commerce

Nonprofit

• “United Ways of California supports Proposition 15 as a critical step to level the playing field for new and emerging businesses, and also to enable local governments and schools to better address long-deferred infrastructure needs and fight social, economic, and racial inequities in education and social services.” – United Ways of California

Advocacy groups

• UnidosUS

• Muslim Democrat Club of Southern California

Environmental

• “Californians are facing tough times—wildfires, the COVID-19 pandemic, and skyrocketing unemployment—and we need real investments in our schools and basic services now,” said JB Tengco, Western States Director for the BlueGreen Alliance. “Proposition 15 will shore up the basic resources we need to invest in schools, firefighters and wildfire preparation, and relief now during these difficult times and for years to come. We urge voters to say ‘yes’ to Proposition 15 on or before November 3.”

• “There’s still so much to do to build a more just, sustainable economy, but we have a chance now to make progress at the ballot box. NRDC and the NRDC Action Fund are recommending you vote YES on … Proposition 15 to help raise an estimated $12 billion annually for cities and counties, K-12 education, and community colleges, and sustainable development.” – Natural Resources Defense Council

• Environmental Defense Center

Agriculture

• CalCAN (California Climate & Agriculture Network)

Local Government

• San Mateo County Board of Supervisors

• Marin County Board of Supervisors

• San Diego Community College District

• San Diego Unified School District

• City of Long Beach

• Long Beach Community College District

• Long Beach Unified School District

• Santa Barbara Community College District

ICYMI: New Video & Print Ads from Racial Justice Coalition for Prop. 15

“In California, we are our strongest when we care for one another and tackle our biggest problems together”

Dolores Huerta, Karen Bass, Maria Elena Durazo, Bill Lann Lee, Chrissie Castro, and April Verrett headline racial justice coalition in support of Prop. 15

Spearheaded by some of California’s most prominent civil rights leaders, a new series of print and digital ads just launched to highlight Prop. 15’s diverse network of support and how communities of color will overwhelmingly benefit from local investments instead of corporate tax loopholes. Under Prop. 15, education funding will be distributed equitably to ensure schools with higher rates of low-income, foster youth, and ESL students receive additional resources while the revenue for local governments can be invested in essential local services, like affordable housing, public health and health care, and clean drinking water.

The new video ads and landing pages can be seen below:

Yes on Prop 15

Si a la 15

Here are the full page print ads voters will see all week:

Prop. 15 is a November ballot measure that will close corporate property tax loopholes to reclaim nearly $12 billion every year for schools and critical local services – all while protecting homeowners and renters, small businesses, and agriculture. Prop. 15 will also cut business personal property taxes for small businesses. An analysis of Prop. 15 showed that only the top 10% of commercial and industrial properties will generate 92% of the revenue.