One Tax Falls Short as Others Head to November Ballot
A proposed Long Beach parcel tax that could have placed a significant new cost on commercial and industrial properties will not appear on the November ballot. However, other parcel tax measures across the region are moving forward.
The firefighter-backed initiative sought to raise approximately $70 million annually for fire and emergency services, infrastructure, affordable housing, and other city services.
The measure would have charged most properties $0.15 per square foot of lot area, while industrial properties would have faced a higher $0.45 per-square-foot rate, subject to certain limits and exemptions.
Supporters submitted more than 39,000 signatures, but after verification, the campaign fell roughly 3,100 valid signatures short of the number needed to qualify for the November ballot.
For BOMA/GLA members, the outcome means another proposed tax will not move forward this election cycle in Long Beach.
But the larger conversation about parcel taxes and their potential impact on commercial real estate, is far from over.
Parcel Taxes Are Showing Up Across Our Region
Long Beach is only one example.
In Culver City, a new parcel tax measure is headed to voters this November. The measure would levy a tax based on building square footage, meaning larger commercial properties could face significant annual costs.
Meanwhile, Pasadena voters will also consider a new fire parcel tax that would charge developed properties based on square footage.
While these measures differ, the concern for commercial real estate is similar: square-footage-based taxes can place a disproportionate burden on commercial properties simply because they are larger.
For properties already dealing with vacancies, higher insurance premiums, operating expenses, regulatory requirements, and the costs of attracting and retaining tenants, another annual tax can make it harder to reinvest in buildings and commercial corridors.
This Is Where Our Members Matter
The Long Beach proposal may have fallen short, but Culver City and Pasadena voters will still have decisions to make this November.
That means BOMA/GLA member engagement will be critical.
Voters need to hear directly from the people who own, operate, and manage the buildings that make up their communities.
Our members can explain what these taxes mean beyond a number on a ballot.
For example, higher operating costs can mean less money for building improvements, security, maintenance, tenant amenities, and investments that help keep commercial corridors active and competitive.
Stay Connected
We will continue educating policymakers and voters about how these proposals could affect commercial real estate.
But our strongest advocacy comes when our members add their voices and share what these costs would mean for their individual properties.
As November approaches, we will need our members ready to mobilize, share their experiences, and help voters understand the real-world impact these measures could have on commercial properties and the neighborhoods and business corridors they support.
Stay tuned for opportunities to get involved from our advocacy team, Christopher Bowen and Ashley Rheaume, and right here on BOMA on the Frontline.
