By Tes Welborn, HANC President

Prop 15 was put on the ballot by a record-breaking 1.7 million people who believe that wealthy corporations need to pay their fair share.  “For more than 40 years, California has endured a contorted property tax system that punishes home buyers, chills housing construction and rewards businesses who skate by when assessments are set. Proposition 15 would ease the worst of these abuses while protecting homeowners and small businesses.” --SF Chronicle

Californians have seen our schools and universities go from the best in the nation, to quality and spending near the state of Mississippi’s abysmal levels.  Prop 13.

Proposition 13 largely froze homeowner taxes, a boon to many older and/or cash-strapped Californians. Unfortunately, since properties now could only be reassessed upon sale, long-term holders like commercial and industrial land owners could escape reassessment.  They also could structure deals to avoid reassessment. The result: Businesses enjoyed low taxes while new homeowners faced higher taxes. The classic example is that Disneyland pays less property tax than most home owners.

Prop. 15 offers a solution to this unfairness. It calls for splitting the rolls, with residential property staying within the present protections while it sets more timely assessments for large business holdings. The heart of the original law still will protect homeowners from steep tax boosts.

The proposed change may net as much as $6.5 billion to $11.5 billion!  These vast sums would be split 60% for local government and 40% for schools.  For small businesses, it would exempt commercial properties worth $3 million or less.  This helps protect small businesses such as restaurants and stores, often with small profit margins.

Opponents claim that now isn’t the right moment for a tax increase, given a pandemic-ruined economy and 13.3% jobless rate.  But the changes in Prop. 15 would take place beginning in July 2022 and could be delayed longer if the Legislature chooses. That flexible timetable will allow for the economy to recover.

California has a chance to end a glaring unfairness in tax rules. Vote yes on Prop. 15.