Legislative Update – No on the Property Tax Hike

NAIOP SoCal Members:

We are reaching out to ask that you take action to oppose Proposition 15, an $11.5 billion commercial property tax hike on the November ballot. In addition to voting no on Proposition 15, we ask that you educate colleagues, tenants, clients, friends and family on the negative impact the measure would have on California’s economy. Proposition 15 only needs a majority of California voters to vote yes for the measure to become law.

Proposition 15 would dismantle Proposition 13 protections for commercial properties, require commercial properties to be reassessed at current market value at least every three (3) years and levied in perpetuity, and impact the vast majority of small, medium and large businesses across the state. All commercial property types would be affected by Proposition 15, including retail, industrial, office and hospitality to name only a few. 

This is absolutely the wrong time to pile on to the battered economy the largest property tax increase in state history. California is in the midst of an unprecedented health and economic crisis that has no immediate end in sight. Proposition 15’s higher property taxes will cause rents to skyrocket for small businesses and the cost of living to increase for Californians.

NAIOP SoCal Member Chris Yamashita recently interviewed California Business Properties Association (CBPA) CEO Rex Hime on the reasons why Proposition 15 is bad for commercial real estate, tenants and the California economy.  Below is the interview. 

In addition to voting no on Proposition 15, there are many ways you can help educate tenants, clients, colleagues, friends and family on the negative impact this measure will have on Californians. Below are a few easy to use resources and templates: 

Additionally, two of NAIOP SoCal’s members, CBRE and Newmark Knight Frank (NKF), have produced excellent research reports on the negative impact Proposition 15 would have on commercial real estate and the California economy if passed:

Millions of sample ballots have already been sent and Californians will start voting next week. We need to mobilize the commercial real industry and others to oppose Proposition 15 and protect the California economy.

If you have any questions, please contact either of us.

Thank you for your support and unity.

About NAIOP SoCal: NAIOP SoCal is the leading association of developers, owners, and professionals in office, industrial, retail and mixed-use real estate, has been at the forefront in leading the campaign to vote no on Proposition 15.