With the announcement by supporters that enough signatures were gathered to qualify for the 2020 ballot a ‘split roll’ measure that would raise property taxes on commercial property, the business community issued a condemnation of the effort and reasons why it is unnecessary.
But the response that should be monitored is not the words but the actions of the business community. With a two-year head start on the campaign, will the pledges of millions of dollars to oppose the split roll quickly become a reality? Will California businesses start moving assets or place new satellite offices and plants outside the state?
How will major companies confront a possible spit roll? Here’s a hint from yesterday’s San Francisco Chronicle: Both Apple and Genentech are challenging assessments of buildings and equipment, asking for returns of millions of dollars. Both companies have filed numerous appeals to assessments levied by local assessors foreshadowing, no doubt, what will happen in every county if the split roll passes.
Before the actions occur, here are some of the words from split roll opponents from the business and taxpayer communities:
California Taxpayers Association President Teresa Casazza:
“This property tax increase would be devastating for California, and is completely unnecessary. Local governments are collecting significantly higher property taxes thanks to our economic recovery. There simply is no need for a huge property tax increase, especially when our Rainy Day Fund is filled to the brim and record-level funding has been dedicated to California’s classrooms. The proposed property tax hike would kill the economic growth that made this possible, and would result in many people in our communities losing their jobs.”
Rob Lapsley, president of the California Business Roundtable:
“Hardworking Californians have seen their tax burden increase, including from the state’s gas tax increase last year. In the past eight years, local governments have enacted more than 800 general and special taxes.”
Jon Coupal, president of the Howard Jarvis Taxpayers Association:
“This is yet another attack on the longstanding taxpayer protections in Prop. 13. Special interests continue to push for new and higher taxes to pay for their out-of-control pensions, which have already directed existing tax revenue away from classrooms and other state priorities.”
Rex Hime, president of the California Business Properties Association:
“California already has the worst climate for business and job creation in the country. A split-roll property tax will just increase pressure on many businesses that are already finding it hard to make ends meet.”