Small business owner says yes to Prop. 15

Recently, the Marin IJ published an editorial urging a no vote on Proposition 15, a modest reform to Proposition 13, requiring that commercial properties are taxed on assessed values (“Prop. 15 won’t fix biggest California property tax problem,” Sept. 14).

The editorial recognizes that Proposition 13 is grossly unfair, favoring long-time property holders. It recommends that voters reject the reform because it doesn’t reform all property taxes, it allegedly increases taxes on small businesses and reform should be revenue neutral.

These are bad reasons. Prop. 13 is so entrenched that reform will need to be in steps and not all at once. Prop. 15 on the November ballot addresses the most staggering inequities — the vast loophole created for large commercial properties.

Owners of commercial real estate carefully structure property sales to not trigger reassessments. Disneyland and Chevron essentially are still paying 1978 property tax rates. It is estimated that 92% of the revenue fromProp. 15 will come from only 10% of commercial property holders.

The editorial suggests that this tax will be borne by small businesses. This is not true. Commercial properties worth less than $3 million are exempted. Even in the Bay Area, this covers most property owned by small businesses. Rents for tenants are determined by the market, not property tax rates.

Commercial rents have skyrocketed since Prop. 13 was enacted, even as property tax rates stayed constant. Commercial landlords do not pass their savings on to their tenants. I am a small business owner, and I have no concerns about Prop. 15.

The editorial suggests that reforms should be revenue neutral. California schools need funding now. California spends less per student on average than North Dakota. California has large class sizes and the worst school bus system in the country. The only way to fix this is to increase revenue. This is a badly needed, sensible reform.

— Jenny Silva, Sausalito