Vote “NO“ on Prop 15 Letter to Tenants and Property Owners
Dear Tenants and Property Owners,
On November 3rd there is a ballot initiative called Proposition 15. Amid an unprecedented economic crisis, special interests are pushing Prop 15 on the statewide ballot that will destroy Prop 13’s property tax protections and will be the largest property tax increase in California history. Prop 15 will raise taxes on business property, leading to higher rents for small businesses.
You have probably seen the ads where the proponents of Prop 15 state that “big corporations” get “tax loopholes” and because of that, their property tax bills are less than the residential sector property tax bills. THIS IS A LIE! The primary reason why residential property taxes have increased at a greater rate than commercial property taxes is because residential properties (your home for example) change hands more often and their values have increased at a greater rate than commercial property. Under Prop 13 protections, real property taxes may only increase at a rate of 2% per year if there is no change in ownership. When a change in ownership occurs, then the property is reassessed based upon the current market value.
We are writing this letter because this bill could be disastrous for both of our businesses. We cannot let Proposition 15 pass and we urge you to vote ”NO” on election day. Please keep in mind, almost all commercial leases contain pass through provisions whereby you, the tenant, pays a pro-rata share of the property taxes assessed on the property you lease from us. As your landlord, we can assure you that any increases will be passed through to you for payment. Our company has owned most of our properties for many years and as a result, thanks to Prop 13, we have not had significant increases in our property taxes. This will undue all of those protections and you the tenant will suffer the consequences.
Everyone is entitled to their own political opinion, and we are not trying to preach an agenda. But Proposition 15 is a financial boondoggle, and we cannot let it pass for both of our financial wellbeing. Please tell your friends, Proposition 15 must not pass!