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Tell Your Friends – Proposition 15 Will Increase Cost of Living and Reduce Government Services

Proposition 15

In the conversation regarding Proposition 15, most people pay attention to how a Split Roll tax regime would raise property taxes and hurt businesses in California. While the economic impacts of Prop. 15 are important to note, more attention needs to be placed on how Split Roll will affect families and important government services.

Namely, Proposition 15 will increase basic costs while reducing available revenue for government programs. With the election this Tuesday, it's never been more important to tell your friends and family the costly impact of Proposition 15.

Proposition 15 will increase the cost of living for families

California is already one of the world's most expensive places to live, and Proposition 15 will only create more financial barriers for households barely making ends meet.

This is because a tax on commercial properties is not just a tax on businesses - it is
a tax on families that depend on these businesses.

In particular, since most businesses are obligated to pay their landlords' property taxes, many community businesses will have to pay higher taxes if Proposition 15 receives a majority vote this November.

And, of course, these new taxes will simply be passed onto the consumer.

Under this new tax regime, Californians can expect to pay significantly more for the following goods and services:

  • Grocery stores
  • Restaurants
  • Daycare centers
  • Gyms
  • Barbershops
  • Community centers

In this sense, the revenue created by Proposition 15 doesn't just come from commercial property owners. In fact, a majority of this 'new' revenue will be disproportionately made up of working families in California.

Prop. 15 will impact government programs and services

Moreover, despite claiming to support city services, Proposition 15 will do a lot of harm to government budgets. For one, Prop. 15 will create more than $1 billion dollars in new administrative expenses over three years for county assessors, which must be repaid before any tax revenue goes towards the measure’s stated goals.

During this period, local governments will have to prioritize these administrative expenses over other community services. This means less disposable revenue for other programs related to homelessness, poverty, and other sustainability reforms.

In addition, local governments will continue to remain impacted by Proposition 15 even after this expensive administrative period.

Specifically, since property taxes under Proposition 15 will reflect the state of the real estate industry, government budgets will constantly change every year. This will make it difficult to forecast future budgets and will put city services at risk whenever the market faces a dip.

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