Business

Prop. 15 Do-Over? Measure Calling for Commercial Tax Increase May Show Up on 2022 Ballot

A request for a ballot measure called the “Housing Affordability and Tax Cut Act of 2022” has been submitted to the California Attorney General’s office.

Published

3 years ago

October 4, 2021

Christy Price

Ballot box with US state flag on background - California/ iStock

A request for a ballot measure called the “Housing Affordability and Tax Cut Act of 2022” has been submitted to the California Attorney General’s office. If supporters of the constitutional amendment meet all requirements and collect enough signatures to qualify it, the proposition could appear on the November 2022 general election ballot.

The legislation includes a call to increase property taxes on commercial real estate owners in California. Currently, commercial owners in the state pay property taxes based on the value the property when it was purchased — not the market value.

It is a tax code arrangement that some critics say results in the loss of billions of dollars in revenue for the state each year.

The motivation behind the measure, its supporters say, is to create streams of new state revenue that could be used to combat the state’s housing availability and affordability crises. Among other things, the measure calls for an increase of the tax exemption for eligible California homeowners and a tax relief for renters.

Stanley R. Apps, proponent of the measure, says he intends for the proposition to code into law a substantial property tax exemption for homeowners. In the ‘Purpose and Intent’ section of the proposal, it states, “Since 1972, homeowners have only received a $7,000 property tax exemption, even though the median home price has grown from $28,660 to over $700,000. An increase in this exemption is long overdue. This Act will increase the exemption to $200,000.”

The proposed increase would save most homeowners nearly $2,000 in taxes per year, making housing more affordable for middle and working-class families.

Section 5 of the ballot measure’s language specifically proposes that all property in the state, including commercial real estate, be taxed at a rate that is based on “fair market value.” It also calls for an annual surcharge on all property worth $5 million or more.

If this measure sounds familiar, you may be thinking about Proposition 15 which appeared on last November’s ballot. The proposition also calls for a commercial property increase. California voters rejected the measure.

Prop 15 was drafted in response to Proposition 13, which passed in 1978 and set the current precedent for commercial taxing rates in California.

Critics say Prop 13 led to a 60% decrease in property tax revenue collected by local governments the year after the proposition was passed. Prop 15 would have called for owners of commercial property of a combined value of over $3 million to pay property taxes based on the current value while protecting owners of property under $3 million and owners of agricultural and residential property.

Those opposed to Prop 15 argued that most of the proposed tax burden would fall on renters of the property instead of the owners themselves due to clauses in lease agreements.

The new 2022 act has raised the value to $5 million for the adjusted taxes to take affect and also includes clauses that mandate property owners must take responsibility for the new taxes and may not pass the burden down to tenants.

Although, opponents of the Housing Affordability and Tax Cut Act of 2022 make direct comparisons between it and Prop 15, one distinction between the two proposals that stand out is that the new initiative focuses on housing. Taxes raised from Prop 15 would have supported public education.

Institutions that opposed Prop 15 are prepared to mobilize once again to fight against the new measure. In a press release from the California Business Roundtable, President Rob Lapsey issued this statement in response to the proposal.

“The voters of California already made their position on higher taxes clear last year when they defeated Proposition 15, the largest property tax increase in California history. Today, all Californians continue to pay the highest cost of living while businesses are struggling with a sluggish recovery, a crippling labor shortage and a new tax increase to pay off the massive state-created debt in the Unemployment Insurance Fund. While California needs housing reforms to increase supply and improve affordability, a huge tax increase on homeowners, small business owners and renters is not a solution. We are ready to mobilize our broad coalition to once again defeat this measure in 2022.”

Read the Housing Affordability and Tax Cut Act of 2022 in its entirety.

Christy Price

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Oakland Post: Week of April 24 – 30, 2024

The printed Weekly Edition of the Oakland Post: Week of April 24 – 30, 2024

Published

7 days ago

April 26, 2024

Oakland Post

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State Controller Malia Cohen Keynote Speaker at S.F. Wealth Conference

California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco. The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

Published

2 weeks ago

April 20, 2024

Oakland Post

American Business Women’s Association Vice President Velma Landers, left, with California State Controller Malia Cohen (center), and ABWA President LaRonda Smith at the Enterprising Women Networking SF Chapter of the ABWA at the Black Wealth Brunch.

By Carla Thomas

The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

“Our goal is to educate Black and Brown families in the masses about financial wellness, wealth building, and how to protect and preserve wealth,” said ABWA San Francisco Chapter President LaRonda Smith.

ABWA’s mission is to bring together businesswomen of diverse occupations and provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support, and national recognition.

“This day is about recognizing influential women, hearing from an accomplished woman as our keynote speaker and allowing women to come together as powerful people,” said ABWA SF Chapter Vice President Velma Landers.

More than 60 attendees dined on the culinary delights of Chef Sharon Lee of The Spot catering, which included a full soul food brunch of skewered shrimp, chicken, blackened salmon, and mac and cheese.

Cohen discussed the many economic disparities women and people of color face. From pay equity to financial literacy, Cohen shared not only statistics, but was excited about a new solution in motion which entailed partnering with Californians for Financial Education.

“I want everyone to reach their full potential,” she said. “Just a few weeks ago in Sacramento, I partnered with an organization, Californians for Financial Education.

“We gathered 990 signatures and submitted it to the [California] Secretary of State to get an initiative on the ballot that guarantees personal finance courses for every public school kid in the state of California.

“Every California student deserves an equal opportunity to learn about filing taxes, interest rates, budgets, and understanding the impact of credit scores. The way we begin to do that is to teach it,” Cohen said.

By equipping students with information, Cohen hopes to close the financial wealth gap, and give everyone an opportunity to reach their full financial potential. “They have to first be equipped with the information and education is the key. Then all we need are opportunities to step into spaces and places of power.”

Cohen went on to share that in her own upbringing, she was not guided on financial principles that could jump start her finances. “Communities of color don’t have the same information and I don’t know about you, but I did not grow up listening to my parents discussing their assets, their investments, and diversifying their portfolio. This is the kind of nomenclature and language we are trying to introduce to our future generations so we can pivot from a life of poverty so we can pivot away and never return to poverty.”

Cohen urged audience members to pass the initiative on the November 2024 ballot.

“When we come together as women, uplift women, and support women, we all win. By networking and learning together, we can continue to build generational wealth,” said Landers. “Passing a powerful initiative will ensure the next generation of California students will be empowered to make more informed financial decisions, decisions that will last them a lifetime.”

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Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

2 weeks ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”