You’ll end up paying if Prop. 15 wins

Proposition 15 comes with a hefty title: “The California Schools and Local Communities Funding Act of 2020,” that tries to hide what it really is: a huge tax hike.

The initiative is an attempt to roll back part of Proposition 13’s property tax limiting provisions. That 1978 measure cut property taxes back to 1 percent of purchase price, and limited assessment increases of the property’s value to nomore than 2 percent a year.

Proposition 15 seeks to change the rules for business property. While the 1 percent limitation would remain, it would be based on the current market value of the property, rather than its purchase price.

The change would be phased in from 2022 to 2025, and when complete, the government would haul in an additional $8 billion to $12.5 billion each year, according to the Legislative Analyst’s Office.

The money would be split 60 percent for cities, counties and special district, and 40 percent for schools and community colleges.

But first the state would take a share equal to the amount of income tax revenue it would lose, since property taxes are deductible.

Proposition 15 backers say it wouldmake “wealthy corporations” pay their “fair share” of taxes. But they only it canmake it a “fair share” by changing the rules on some California properties and not others. Is that fair?

And you know the “wealthy corporations” aren’t going to eat the tax hike. Let’s use a middle number of $10 billion. They’re going to pass that on to you. Each Californian’s share would be about $250 a year if it fell out evenly. It won’t. The rich with their clever accountants will pay less, and the poor will pay more.

The proposed law also poses a major threat to agriculture, although it claims to exempt farming from the tax hike.

However, every reference to agriculture in the text specifically mentions just the land as being exempt.

As buildings, machinery and equipment are considered taxable property, it sure seems like reassessment of barns, processing plants, and conceivably even orchards would be allowed.

The state Farm Bureau Federation is understandably opposed. So are we.

Our recommendations on the other state propositions will appear Friday.