ARGUMENT IN FAVOR OF PROPOSITION 15

We are all better off when everyone pays their fair share. But California is giving away billions of dollars in property tax breaks to wealthy corporations. These billions could be used instead to deal with increasing inequality, persistent poverty, unemployment, unaffordable housing, homelessness and underfunded schools.

While the wealthiest corporations avoid paying their fair share, our schools have the most crowded classrooms in the nation and our local communities are struggling to respond to the impact of COVID-19.

Prop. 15 is a fair and balanced reform which:

• • closes property tax loopholes benefiting wealthy corporations
• • cuts small business taxes
• • reclaims billions of dollars to invest in our schools and local communities.

Prop. 15 will:

Close corporate loopholes: Wealthy corporations avoid reassessment by employing highly paid tax lawyers and accountants to exploit loopholes in the law. Prop. 15 closes these loopholes by requiring nonresidential commercial properties to be assessed based on their actual fair market value.

• The top 10% of California's most valuable nonresidential commercial properties account for 92% of Prop. 15's new revenues.

Does not impact homeowners and renters: Prop. 15 exempts all residential properties, maintaining FULL PROP. 13 PROTECTIONS for homeowners and renters.

Cut taxes for small businesses: Prop. 15 protects small businesses and cuts their taxes by:

• Exempting businesses operated out of a home and businesses owning $3,000,000 or less of nonresidential commercial property

• Cutting business personal property taxes on equipment, computers and fixtures.

Restore balance to the property tax: Since Prop. 13 passed, the residential share of property taxes has skyrocketed from 55% to 72% and the nonresidential commercial share has fallen. Meanwhile we're paying more in fees, fines and other taxes.

Prop. 15 rebalances the scales.

Increase funding for schools and community colleges: Every school district and community college will receive additional funding over and above existing funding guarantees. Prop. 15 funds go directly to education and state politicians can’t take it away.

Invest in essential workers and local services: Prop. 15 gives local communities desperately needed resources so essential services and frontline workers can respond to current challenges and prepare for future crises, whether from a wildfire, pandemic, or earthquake.

Support economic and racial equity: Prop. 15 makes sure schools with the greatest needs get the most help and gives local communities critically needed resources to deal with the unequal impacts of COVID-19, unemployment, and housing costs on communities of color.

Prioritize full transparency and accountability by requiring schools and local governments to publicly disclose all new revenues they receive and how they are spent.

Protect agricultural land: Prop. 15 makes no change to existing laws affecting the taxation or preservation of agricultural land.

We can’t afford business as usual. Prop. 15 rebalances the scales by closing loopholes and supporting our schools, local communities and small businesses.

Prop. 15 takes a big step forward toward a better future for all Californians. It was placed on the ballot by the signatures of over 1,700,000 voters who want wealthy corporations to pay their fair share.

Please add your voice to theirs: Vote Yes on Prop. 15.

TONY THURMOND, California Superintendent of Public Instruction

JACQUELINE MARTINEZ, CEO

Latino Community Foundation

SASHA CUTTLER, Public Health Nurse

San Francisco Department of Public Health

REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 15

PROP. 15: ALL CALIFORNIANS WILL PAY FOR THE LARGEST PROPERTY TAX INCREASE IN STATE HISTORY!

REPEALS PROP. 13 PROTECTIONS

Prop 13 limits property tax increases to 2% annually, providing certainty to homeowners and small businesses that they can afford their taxes in the future. Supporters of Prop 15 admit they’ll go after Prop 13 protections for homes next – meaning skyrocketing taxes for all homeowners!

PROP. 15: RAISES OUR COST OF LIVING AND MAKES INCOME INEQUALITY WORSE

Billions in higher taxes will be passed on to California's small businesses in the form of higher rents, forcing businesses that are barely surviving now to lay off employees and raise prices. Higher costs for food and everyday necessities will hit all of us and low–income families hardest. We can't afford to raise our cost of living.

PROP. 15: DOESN'T SOLVE OUR CURRENT BUDGET CRISIS

Prop. 15 will not solve today’s budget deficits. The nonpartisan Legislative Analyst says most funding won't arrive until 2025. Additionally, the California Assessors' Association says Prop. 15 will cost more than $1 billion to implement, meaning deeper cuts to already stretched local government budgets.

PROP. 15: MISLEADING AND LACKS ACCOUNTABILITY

Prop. 15's supporters say it's about more money for education, but nearly 70% of the tax money doesn't even go to schools. Politicians can even divert the local government tax money for other purposes, just like they’re doing with the gas tax.

NO ON PROP. 15. www.NOonProp15.org

JON COUPAL, President

Howard Jarvis Taxpayers Association

ALICE HUFFMAN, President

California State Conference of the NAACP

BETTY JO TOCCOLI, President

California Small Business Association

ARGUMENT AGAINST PROPOSITION 15

PROP. 15 WILL BE THE LARGEST ANNUAL PROPERTY TAX INCREASE IN CALIFORNIA HISTORY—UP TO $12.5 BILLION PER YEAR!

Prop. 15's massive increase in annual property taxes will have disastrous economic impacts for every Californian—from small businesses and consumers to farmers and homeowners.

PROP. 15 REPEALS TAXPAYER PROTECTIONS IN PROP. 13

Prop. 13's taxpayer protections have kept property taxes affordable by capping property taxes and limiting increases annually, providing taxpayers certainty they can afford their property taxes now and into the future. Prop. 15 eliminates that certainty for millions of taxpayers.

• "Prop. 15 is a direct threat to homeowners. Supporters of the tax hike openly admitted that this is merely the first step in completely dismantling Prop. 13 which voters approved to stop skyrocketing property taxes." —Jon Coupal, President, Howard Jarvis Taxpayers Association

PROP. 15 RAISES OUR COST OF LIVING

Prop. 15's tax hike will increase costs on everything people buy, including groceries, fuel, utilities, day care and health care.

• "Too many families have been priced out of their neighborhoods because of the rising cost of living. Prop. 15 will raise the cost of living for California families by up to $960 and will especially hurt lower–income communities." —Alice Huffman, President, California State Conference of the NAACP

PROP. 15 DESTROYS JOBS AND SMALL BUSINESSES

Seven million Californians work for a small business. Millions of Californians are filing for unemployment and are at risk of losing everything. NOTHING in Prop. 15 stops the tax from being passed on to small business tenants. Prop. 15 will make the economic crisis worse by devastating small businesses—including our neighborhood restaurants, barbershops, and dry cleaners.

• "Most small businesses rent the property on which they operate. Prop. 15's higher property taxes will mean skyrocketing rents at a time we can least afford it." —Jot Condie, President, California Restaurant Association

PROP. 15 RAISES TAXES FOR FAMILY FARMERS, RESULTING IN HIGHER COSTS FOR FOOD

Prop. 15 will raise property taxes on farming—including barns, dairies, processing plants and even fruit and nut trees.

• "Prop. 15 hurts family farmers and we all will end up paying higher costs for groceries including milk, eggs and meat." —Jamie Johansson, President, California Farm Bureau Federation

PROP. 15 LACKS ACCOUNTABILITY

Prop. 15 will cost taxpayers $1 billion each year in bureaucratic expenses, and politicians can spend the higher property tax revenue on anything they want, including administrative costs, outside consultants and pay raises.

• "Prop. 15 allows politicians to divert its tax hike revenue to anything the special interests want, just like they’re doing with the gas tax." —Marilyn Markham, Board Member, California Senior Advocates League

INDEPENDENTS, DEMOCRATS AND REPUBLICANS AGREE—NO ON PROP. 15.

NOW IS NOT THE TIME TO RAISE PROPERTY TAXES IN CALIFORNIA.

ROBERT GUTIERREZ, President

California Taxpayers Association

ALICE HUFFMAN, President

California State Conference of the NAACP

BETTY JO TOCCOLI, President

California Small Business Association

REBUTTAL TO ARGUMENT AGAINST
PROPOSITION 15

Prop. 15 is a fair and balanced reform which: – Closes property tax loopholes benefiting wealthy corporations – Cuts small business taxes – Does not impact homeowners and renters – Reclaims billions of dollars for schools and local communities

California must take these steps right now to secure a better future for us all.

Wealthy owners of the MOST EXPENSIVE 10% OF BUSINESS PROPERTIES account for 92% of Prop. 15's revenues.

Prop. 15 supporters: teachers, nurses, small business owners, clergy, affordable housing advocates, and community organizations who want to close corporate tax loopholes and rebalance the scales.

Prop. 15 opponents: wealthy corporations and out–of–state investors trying to keep their tax breaks by using scare tactics to confuse the issue.

Read the measure for yourself and remember, Prop. 15: • Maintains FULL PROP. 13 PROTECTIONS for homeowners and renters. • CUTS small business taxes AND specifically exempts all home–based businesses AND exempts small businesses owning $3,000,000 or less in business property. • Guarantees transparency and accountability by requiring full public disclosure of all new revenues and how they’re spent. • Keeps Prop. 13's low 1% limit, so California's business property taxes will still be below most states.

Learn more at scaretactics15.org.

As we rebuild from the COVID–19 shut down and prepare for challenges ahead, business as usual won't do. It's time we invest in small businesses, students, healthy families, and safe neighborhoods.

Prop. 15 is a balanced reform that closes corporate loopholes benefiting the top 10% and restores billions to our schools and communities—Vote Yes on Prop. 15.

E. TOBY BOYD, President

California Teachers Association

CAROL MOON GOLDBERG, President

League of Women Voters

TARA LYNN GRAY, CEO

Fresno Metro Black Chamber of Commerce