What you should know about Prop. 15
DEMOCRATIC CLUB
By Mary Larson
LW contributor
The LW Democratic Club wants to highlight the California Schools and Local Communities Funding Act that will appear on voter’s Nov. 3 ballot as Proposition 15. This proposition promises to be the most contentious of the 12 that voters will be considering. It seeks to change the property tax law enacted under Proposition 13 as it applies to commercial and industrial properties.
If Proposition 15 passes, commercial properties in California would still pay one of the lowest property tax rates in the nation due to the 1 percent tax limit. In addition, under the 2017 Tax Cuts and Jobs Act, businesses may fully deduct the property tax from their federal taxes.
In order to be fully aware of what is involved in Proposition 15, it is important to first review what happened when Proposition 13 passed 42 years ago with 64 percent voter approval.
Most Leisure World residents will remember that 1978 was a time of increasing property values which in turn resulted in a higher tax burden on property owners, including homeowners. Between the years of 1970 and 1980, the median property value increased by 250 percent while the median household income remained largely stagnant. This led to growing concern among homeowners whose incomes did not increase with the sudden rise of housing prices but
1/25/17 who were subject to higher property taxes.
Unfortunately, after Proposition 13 passed, local communities and schools saw a drastic drop in funding. According to the Legislative Analyst’s Office report, local revenue fell by nearly 60 percent, leaving cities and counties to rely heavily on other sources of revenue such as local sales taxes to compensate for the loss. Despite the state’s efforts to intercede and support cities and counties with additional funding, schools and cities have remained chronically underfunded compared to the years before 1978.
USC’s Program for Environmental and Regional Equity estimates that Orange County would receive $1.1 billion of the revenue generated by the passage of Proposition 15. It also estimates that more than 75 percent of the projected $3.6 billion in state-wide revenue will come from the largest and wealthiest corporations in the state.
Facts included in this article come from an analysis by Southern California Grantmakers (SCG). SCG is the regional association where family, private, independent, community and public, corporate foundations come together with corporate giving programs, individuals, and government agencies to make a difference in our communities and around the world.
For more information about what both supporters and opponents have to say about Proposition 15, visit www.socalgrantmakers.org/resources/ analysis-california-schools-and-local-communities-funding-act
The LW Democratic Club will continue to provide information about other propositions on the Nov. 3 ballot as the election inches closer. •••• Those who are interested in receiving the Democratic Club’s electronic newsletter on a regular basis can email the editor, Mary Larson, at mlarson.telfords@gmail.com or call (562) 296-8521 with your contact information. There’s also information available on the LW Democratic Club website at www.sblwdems.wordpress.com. Email lwsbdemocraticclub@gmail.com for information about how to become a club member.
