Just last month, we were pleased to announce that the pro-tax coalition behind placing an anti-Proposition 13 measure on the November ballot had decided to stop collecting signatures and put off their efforts for another year. Apparently, the powers that be in Sacramento will not give up their fight to get more of our money. State Senators Loni Hancock (D-Oakland) and Holly Mitchell (D-Los Angeles) have introduced new legislation, SB 1093, that states the intent of the Legislature to enact a split-roll property tax this year.
A split-roll property tax system would be terrible for California. Taxpayers already struggle under the burden of the highest sales taxes in the country, the highest income taxes in the country and one of the highest gas taxes in the country. Proposition 13 is the only reason our property tax rates are not the highest. A split roll system would cause severe hardships to every small business owner in our state.
A recent report from Pepperdine University states that a split roll would result in over $71 billion in reduced economic activity and a loss of almost 400,000 jobs the first five years alone. Think of every place you do business with; grocery stores, dry cleaners, nail salons, pet groomers, banks, doctor's offices. The list goes on and on. Then, picture what placing a subjective, volatile property tax rate will do to each one, and how much of that cost will be passed on to you, if they can even afford to stay in business in California.
Then, think about who will be next, right after the business community has been taken care of. It will be California homeowners. Please make sure your state legislators know that we will not accept anything short of total protection of Proposition 13.