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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.

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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. 

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Through Ads and Advocates, Battle Over Calif. Gambling Propositions Heat Up

A statewide survey by the Public Policy Institute of California (PPIC), conducted between Sept. 2 and 11 and released on Sept. 15, revealed that 54% of California voters would vote “no” for Prop 27, while 34% would vote “yes.” Twelve percent of the respondents were “unsure.” The survey’s authors wrote that a strong majority of Republicans wouldn’t vote for the proposition, compared to half of Democrats and independents.

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The dueling propositions have raised a combined $400 million for advertising leading up to Election Day this November.
The dueling propositions have raised a combined $400 million for advertising leading up to Election Day this November.

By McKenzie Jackson | California Black Media

Clint Thompson, a Santa Monica resident in his 30s, wouldn’t say he has been inundated with advertisements supporting or denigrating Propositions 26 and 27, but he sees an ad focused on one of the legislations each time he turns on his television.

“I usually watch the news during the day — NBC — and on NBC, Prop 26 or Prop 27 comes on every other commercial break per show,” said Thompson, an actor, who admitted he hasn’t researched the sports gambling propositions. “Both of the props seem to have good things with them. The commercials seem to have reasons why you should say ‘yes,’ or ‘no.’”

Prop 26 would legalize roulette, dice games, and sports betting on Native American tribal lands if approved by voters in the Nov. 8 election. It is backed by over 50 state Native American tribes.

Prop 27, supported by sportsbooks DraftKings, FanDuel, BetMGM, Fanatics, PENN Entertainment, and WynnBet, would give those sports betting companies the reins in sports gambling in the Golden State and allow online gambling.

If people like Thompson feel the advertisements from the campaigns for and against the propositions seem to be flooding the television and radio airwaves — and to be ever-present on social media (Watched a YouTube video lately?) — they might be right.

The dueling propositions have raised a combined $400 million for advertising leading up to Election Day this November. That has led to ads backing and slamming the two propositions to be front and center in all forms of media Californians consume.

Dinah Bachrach of the Racial Justice Allies of Sonoma County, a group supporting Prop 26, said the proliferation of ads supporting Prop 27 is concerning.

“They are all over the place,” Bachrach said. “Gambling is already a pretty big business, but to be able to do sports gambling online is dangerous because it hurts what tribal casinos have been able to do for their communities in the state.”

According to Bachrach, Prop 26 protects the sovereignty of native tribes. “It’s a really important racial justice issue,” she said. “Indian casinos provide a tremendous amount of financial support for the casino tribes and the non-casino tribes, and they contribute a lot locally and to the state.”

Bachrach’s organization is one of several civil rights or African American organizations that have thrown its support behind Prop 26.

Santa Clarita NAACP spokesperson Nati Braunstein said in an email, “The NAACP supports Prop 26, which would legalize retail sports betting at California tribal casinos only and opposes Prop 27 which would allow online sports betting via mobile sportsbooks.”

Kathy Fairbanks, speaking for the Yes on 26/No on 27 coalition, composed of California Indian tribes and tribal organizations, and other partners, said winning the approval of every potential voter, including Black Californians, is their goal.

Yes on 27 – Californians for Solutions to Homelessness, the campaign arm of Prop 27 backers, had not returned California Black Media’s requests for comment for this story as of press time. Prop 27 proponents say in ads and the Yes on 27 website repeats that the initiative would help solve California’s homelessness crisis.

Prop 27 imposes a 10% tax on adjusted gross gaming revenue. Eighty-five percent of the taxes go toward fighting California’s homeless and mental health challenges. Non-gaming tribes get the remaining 15% of tax revenue.

Organizations such as Bay Area Community Services, Sacramento Regional Coalition to End Homelessness, San Diego Regional Task Force on Homelessness, and individuals including Long Beach Mayor Robert Garcia, Oakland Mayor Libby Schaaf, Bay Area Community Services CEO Jamie Almanza, and Middletown Rancheria of Pomo Indians Chairman Jose “Moke” Simon are listed as Prop 27 supporters on the Yes on 27 website.

On the campaign’s Facebook page, commenter Brandon Gran wrote under an advertisement photo that voting for Prop 27 was a “no brainer.”

“People are already gambling using offshore accounts,” he typed. “Why not allow CA to get a piece of the pie … money that will (hopefully) go to good use.”

However, a statewide survey by the Public Policy Institute of California (PPIC), conducted between Sept. 2 and 11 and released on Sept. 15, revealed that 54% of California voters would vote “no” for Prop 27, while 34% would vote “yes.” Twelve percent of the respondents were “unsure.”

The survey’s authors wrote that a strong majority of Republicans wouldn’t vote for the proposition, compared to half of Democrats and independents.

“Regionally, majorities in the Inland Empire, Orange/San Diego, and the San Francisco Bay Area would vote ‘no,’ while likely voters in the Central Valley and Los Angeles are divided,” they wrote. “At least half across most demographic groups would vote ‘no.’ Likely voters age 18 to 44 (52%) and renters (51%) are the only two demographic groups with a slim majority voting ‘yes.’”

The survey, titled “PPIC Statewide Survey: Californians and Their Government,” did not ask participants about Prop 26. The Yes on 26/No on 27 coalition, said in a news release that the PPIC’s research confirmed what Prop 26 supporters have said for some time.

“Despite raising more than $160 million for a deceptive advertising campaign, California voters are clearly not buying what the out-of-state online gambling corporations behind Prop 27 are selling,” the statement read.

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Activism

Oakland Promise and Kaiser Support Promising Student

Kaiser Permanente gave a significant grant to Oakland Promise, helping it reach a $50 million goal for its Generation Fund, which will offer college savings accounts and scholarships to all low-income Oakland public school students while they’re pursuing college degrees or trade certificates.

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Kaiser Permanente partners with Oakland Promise to cultivate mentor program, scholarships, academic guidance. Pictured, Kaiser Permanente mentor Ingrid Chen, MD, at right, with Sandy La, who begins her second year of college this fall.
Kaiser Permanente partners with Oakland Promise to cultivate mentor program, scholarships, academic guidance. Pictured, Kaiser Permanente mentor Ingrid Chen, MD, at right, with Sandy La, who begins her second year of college this fall.

By Carla Thomas

When Sandy La applied to two programs while a senior at Oakland High, she had no idea the Oakland Promise program would truly reward her for being a promising student on the rise. Now a successful student at UC San Diego majoring in Public Health, La has spent over 12 months mentored by Kaiser Permanente Oakland psychiatry resident Ingrid Chen. For Chen, mentoring a student and just being there for her was key.

Kaiser Permanente gave a significant grant to Oakland Promise, helping it reach a $50 million goal for its Generation Fund, which will offer college savings accounts and scholarships to all low-income Oakland public school students while they’re pursuing college degrees or trade certificates.

“The program is very well organized, and very accessible for busy working people,” said Dr. Chen. Kaiser Permanente is partnered with Oakland Promise to cultivate mentor programs, scholarships and academic guidance.

La was one of the lucky few of 300 to 400 Oakland high school students who received college scholarships ranging from $2,000 to $16,000 each year from Oakland Promise, and Dr. Chen is one of the 34 mentors from Kaiser Permanente who help keep them in college, often forming long lasting friendships.

“When I first moved to Oakland in 2020 to start my residency, the social justice movements spotlighting racial inequality in our society inspired me to help the community,” said Dr. Chen. “My parents are first generation Taiwanese immigrants, so I have a heart for immigrant families and other groups that are often marginalized in society.”

Dr. Chen makes herself available to La and one other student to talk about anything and help them identify opportunities in college and beyond.

“It’s been great to have someone to talk to and support me,” said La, who says the extra support really matters.

Dr. Chen says it has been great getting to know La and supporting her. La says the support has been a great confidence booster and she now pays it forward while counseling incoming freshmen. “I’m majoring in public health because I want to make a difference in health care and solve some of the disparities in the field,” said La.

Kaiser Permanente is also a founding sponsor of Oakland Promise, said Yvette Radford, Kaiser Permanente Northern California vice president of External and Community Affairs. “Oakland Promise is creating brighter futures for children and families by supporting children at every stage in their lives, from the day they’re born to the day they graduate from college,” said Radford. “This innovative public-private partnership is helping Oakland’s children become more successful in school and in life.”

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Meet the Woman Who Spearheaded Equity, Inclusion in the Business World

Among many things, Mason Tillman Associates conducts disparity studies that show how equitably or inequitably governments distribute contracts to outside businesses. “We have been able to improve the lives of many minority and woman business owners,” said Eleanor Ramsey, president and CEO of the firm Mason Tillman Associates, adding that the work has been helping them secure contracts and improve profitability.

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Eleanor Ramsey, president and CEO of Mason Tillman Associates, a consulting firm that shines the light on unfair practices in government contracting nationwide. (Pat Mazzera/Mason Tillman Associates via Bay City News)
Eleanor Ramsey, president and CEO of Mason Tillman Associates, a consulting firm that shines the light on unfair practices in government contracting nationwide. (Pat Mazzera/Mason Tillman Associates via Bay City News)

By Keith Burbank, Bay City News

Eleanor Ramsey, president and CEO of the firm Mason Tillman Associates, has been creating change for Black people and other minorities long before she started consulting.

In an interview last Wednesday at her office in downtown Oakland, Ramsey said she first worked on easing racial conflict by serving on the student relations council in high school. The goal was to integrate the lunchroom in a school that consisted of 80% white students and 20% Black students.

Ramsey went on to get a doctorate in anthropology from the University of California at Berkeley and has been operating Mason Tillman Associates since starting it in 1978. Her firm’s name is a combination of Ramsey’s maiden name, Mason, and Tillman, a last name by which her husband was known.

Among many things, Mason Tillman Associates conducts disparity studies that show how equitably or inequitably governments distribute contracts to outside businesses.

“We have been able to improve the lives of many minority and woman business owners,” Ramsey said, adding that the work has been helping them secure contracts and improve profitability.

Mason Tillman Associates’ statistical research has revealed institutional practices systemically limiting minority businesses’ access to public contracts.

The company’s disparity study research and policy recommendations have helped identify and modify governments’ practices. Consequently, billions of dollars have been distributed more fairly in over 150 cities, counties, and states since 1978, she said. For example, New York State’s current minority business law is predicated on a Mason Tillman disparity study.

Oakland officials were at first reluctant to release a disparity study for their city, causing an outcry from the Black community. The study — kicked off by Ramsey’s firm — was eventually released in November 2020. Mason Tillman Associates plans to update it following a year of talks.

The company is also credited with preparing the nation’s first competitive disparity study, which was done for Maricopa County, Arizona, in 1990.

Disparity studies aren’t just the right thing to do, they’re the law. Following a 1989 U.S. Supreme Court ruling in the case of City of Richmond v. J.A. Croson, disparity studies must be prepared to document the need for awarding contracts to minorities. Lawmakers can no longer give preference to minorities without evidence from a study.

Ramsey suspects 300 to 400 studies have been conducted since the SCOTUS decision.

She has also been at the forefront of breaking through ceilings for businesswomen.

“The notion of the glass ceiling was very real,” she said, adding that for Black women, the ceiling was made of “concrete.”

Starting Mason Tillman Associates gave her an occupation when doors were closed for Black women following her attempt to become a university professor, she said.

“You walked a fine line,” said Ramsey.

Women could not come off as too intelligent without offending men. She refined the art of levity to make people feel comfortable.

Before Mason Tillman Associates, Ramsey worked as a flight attendant for the now-defunct yet iconic Pan American Airways. She was the second Black female flight attendant to be hired by Pan Am, which was the only international carrier in the U.S. in the 1960s. Pan Am was known for its stewardesses — now called flight attendants, another positive change for women in the workforce.

Ramsey managed to earn her doctorate in 1977 while raising six children. Then she applied for jobs as a professor and neither UC Berkeley nor the University of Colorado Boulder would hire her. Society wasn’t ready for a Black female professor, she said.

Her experience has taken her on some interesting journeys. While living in Boulder, she secured a contract with the National Park Service to investigate whether Wilberforce, Ohio, was once part of the underground railroad. That, she said, was the start of her consulting business.

Since starting Mason Tillman Associates 44 years ago, Ramsey has trained many professionals in the company’s Oakland headquarters. The firm continues to help redefine managers’ views of Black businesses in agencies nationwide.

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