There’s been no shortage of attempts in recent years in the State Legislature to overhaul Proposition 13—California’s landmark initiative protecting homeowners and small business owners from out of control property taxes.
Multiple bills have taken aim at the proposition, but the most popular among these bills pushes the so-called “split roll” property tax, which would eliminate Prop. 13 protections for job creators but leave them in place for homeowners. This split roll idea is especially favored by lawmakers who are eager to bring more money into state coffers.
Given that California has the highest poverty rate in the nation, it seems a bit out of touch, if not downright greedy, for lawmakers to focus on funding government instead of making sure there are economic opportunities for everyone.
A recent study from Pepperdine University shows that split roll would increase property taxes on businesses by an estimated $6 billion. But the same study also shows that split roll could trigger the loss of nearly 400,000 jobs and cost California’s economy a total of $71.8 billion in output within the first five years.
That $71.8 billion loss would… Read More