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Press Release
November 17, 2008
California’s Economy and Low-Income Residents Hardest Hit By Commercial Property Tax Increases, Study Says
Report predicts statewide ripple effect under a “split roll” property tax
would be hard hit by billions in new taxes
Sacramento – Californians Against Higher Property Taxes (CAHPT), a coalition of small businesses, taxpayers and businesses organizations has released a report showing the far-reaching and negative impact “split roll” property tax would have on California. A “split roll” tax would remove Prop. 13 protection for commercial property owners including small businesses and rental housing owners.
“The study proves what we have said all along – that increasing taxes on commercial property owners will badly damage small business, renters, seniors and more,” said Joel Fox, CAHPT co-chair. “Split roll would deliver a devastating blow to our already unstable economy and knockout punch to our state’s most vulnerable residents.”
The study, “The Economic Effects of California Adopting a Split Roll Property Tax” was authored by former California Legislative Analyst William Hamm and academic Jose Alberro.
The report lists a number of negative impacts of a split roll tax on Californians, including:
- Higher rents paid by families, seniors and small businesses, with particular impact on minority-owned businesses
- A loss of 150,000 jobs
- Reduced wages
- Increased consumer prices
- Decline in the value of financial assets held by public retirement funds
- Increased development of open land (due to increased costs of “holding” land)
The study also dispels a myth, regularly proffered by supporters of the split roll tax, that Prop. 13 has shifted the property tax burden from business to homeowners. Indeed, the study found that “the assessed-value-to-market-value ratio for owner-occupied residential property in the 2006-2007 roll was 53 percent, while the ratio for commercial and industrial property was nearly 60 percent. In other words, commercial and industrial property is being assessed for tax purposes at values that are closer to market values than is the case for owner-occupied residential property.”
To view the full report and to find out more about CAHPT, visit: www.stophigherpropertytaxes.org
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