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Press Release
June 30, 2008
Diverse Coalition of Business and Taxpayer Groups Launch Effort to Educate Californians About the Devastating Impacts of Higher Property Taxes
Consumers, small business, seniors, renters and the economy
would be hard hit by billions in new taxes
Sacramento – A diverse statewide coalition announced today that they will undertake efforts to educate California opinion leaders and the public about the devastating impacts of increased property taxes. Californians Against Higher Property Taxes will provide studies, analysis and other information to raise awareness about how higher property taxes, including the “split roll” tax, burden small business, consumers, seniors, renters, and damage California’s overall economy.
“Californians are already being pummeled with the one-two punch of higher energy prices and a collapsing housing market,” said Joel Fox, president of the Small Business Action Committee and coalition co-chair. “Higher property taxes will deliver a knockout blow to our economy.”
Fox pointed out that as property taxes increase, small businesses will bear the brunt – being forced to lay off workers, cut benefits and/or close their doors. Some businesses will simply move out of state due to the deteriorating business climate. And, businesses, like family-owned restaurants, auto shops and gas stations will be forced to pass these increased costs on to the public, resulting in higher prices for consumers, increased rents, and a huge burden on seniors living on fixed incomes.
Gilbert Gonzalez, vice president of TGI Catering, Inc. agrees. “Small businesses like mine are already at our breaking point with the high cost of food, gas and benefits. If taxes are raised on our property, we will be forced to cut back on staff or pass our costs on to our customers, or both. Raising property taxes is a really bad idea for everyone.”
For tenants of residential properties, higher taxes will directly affect their cost of living. “Residents living in our apartments are feeling the pinch of the economy like everyone else,” said Joe Fong, owner of Fong Enterprise. “If we have to raise rents to cover property tax increases, it will place an unfair burden on them and could drive them out of their homes.”
The coalition notes that in several recent polls, California voters indicated they do not want to see property taxes go up and support the protections provided by the passage of Proposition 13 in 1978. In fact, a June 2008 Field Poll found that more than twice as many Californians would still support Prop. 13 (57%) today as would oppose it (23%).
Californians Against Higher Property Taxes, which also includes the California Restaurant Association, California Chamber of Commerce, California Taxpayers’ Association, California Business Properties Association, Howard Jarvis Taxpayers Association, California Business Roundtable, National Federation of Independent Business- California, Orange County Business Council and California Retailers Association, among many others, will educate Californians through events, forums, the media and their website www.stophigherpropertytaxes.org.
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