Important Information for Members in California Regarding Ballot Initiatives That May Impact You

News & Press: Industry

Friday, May 17, 2019 (0 Comments)
Posted by: Alyce Ryan

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Dear AICC Members in California,

I am writing to alert you to two ballot measures that will be considered by California voters in the coming months that would raise property taxes on businesses. One initiative is statewide, and the other is focused on Los Angeles. Both initiatives would have a significant tax impact on AICC members with facilities in the affected state/city.

California Schools and Local Communities Funding Act

The California Schools and Local Communities Funding Act is a ballot initiative that would impact all California businesses by changing the current Proposition 13 property tax policies and creating a "split roll" that removes protections for commercial and industrial buildings. Historically, Prop 13 limits the amount that property taxes can be raised each year for both business and residential properties. The upcoming ballot initiative would change this policy and require commercial and business property taxes to be reassessed at "current market value", raising an estimated $11 billion in tax revenue. The policy for residential property taxes would not be changed. If successful, commercial and industrial property owners will be facing significant increases in property taxes. Those with older facilities will likely face the largest changes in their reassessments. The initiative will come up for a vote in November 2020.

Here is a link to a background document prepared by the Howard Jarvis Taxpayers Association that outlines concerns about the initiative:

https://cdn.hjta.org/wp-content/uploads/2019/03/WHAT-IS-SPLIT-ROLL-Flyer.pdf

Measure EE

Measure EE is an initiative focused on businesses in Los Angeles and would place a 16 cents per square foot "parcel tax" on property. If successful, Los Angeles area businesses with large square footage, such as warehouses, will face significant tax increases. The increased tax revenue, estimated to be about $500 million, would go to support the Los Angeles public school system. Measure EE will be considered by voters on June 4, 2019.

Here is a link to the Los Angeles Chamber of Commerce position statement on Measure EE: https://lachamber.com/blog/2019/03/27/the-business-perspective/measure-ee-is-not-the-answer/

And, from the Los Angeles County Business Federation:

https://bizfedlacounty.org/blog/alerts/action-alert-vote-no-on-measure-ee-lausd-needs-reform-more-than-new-money/

I am also attaching a letter that the California Taxpayers Association is circulating to Los Angeles businesses that would be impacted by the tax. They are soliciting donations to mount a campaign to oppose Measure EE.

Because both of these initiatives have the potential to impact businesses operating in California, we wanted to make sure AICC members were aware. Since these are ballot initiatives, it is not a traditional policy matter where AICC can engage with policy makers and encourage members to contact their elected officials. However, for those interested in taking action, organizations like the state and local Chamber of Commerce and the Howard Jarvis Taxpayers Association may have campaigns on these issues where those interested could get involved.

Please let me know if you have any questions.

Best regards,

Steve

Steven Young

President

AICC, The Independent Packaging Association

syoung@aiccbox.org

Direct Line 703.535.1381 | Mobil 202.297.0583

AICC, The Independent Packaging Association