Proposition 15 Will Harm Small Businesses Without Accountability or Reform

by Maria S. Salinas

California, leads the nation in innovation and progressive ideals but it’s losing when it comes to attracting businesses to the Golden State. Last week, Hyperloop, headquartered in Los Angeles, announced their new Certification Center, to be located in the state of West Virginia. The new center will create thousands of jobs in construction, manufacturing, operations and in technology. West Virginia not only welcomed the investment, but sought out the company to bring jobs and economic growth to the state. 

California is not known as a business-friendly state.  We regularly rank at the bottom for business friendliness. California is a great place to start a business, but when additional investment is needed, companies start to explore other cost-effective locations and end up moving out of state. We might not see the effect of so many businesses leaving in the short term, but the long term implication is an eroding tax base. Make no mistake we need businesses to start, grow and stay in California to support the tax base this state has come to rely on for essential services that communities and families depend upon.

Proposition 15 is harmful to our future. The property tax increase to commercial properties is detrimental to businesses and not a solution. Splitting the tax role and treating commercial properties differently from residential properties is not closing a corporate tax loophole nor will it infuse billions into Los Angeles or our classrooms. Small and minority owned businesses stand to be hurt the most. They are typically tenants with standard leases that include the cost of property taxes.

Prop 15 is coming at the worst time. We need to focus on economic recovery and increasing property taxes will not help stabilize our economy. We will continue to see more jobs move to other states. We should be attracting businesses to add to our tax base. We need businesses to create jobs and invest in California. A welcoming and business friendly environment will help secure a stronger, thriving community.

We can't support Proposition 15. It will only contribute to chasing investments, job opportunities moving out of state and the hurting of small businesses, many of which are women and minority owned. We can't afford to erode our tax base further. VOTE NO on proposition 15.