Proposals to change California’s Proposition 13, combined with significant government spending increases threaten the economic future of the state, members of the Los Angeles Business Federation (BizFed) heard today during a special tax day presentation that also included appearances by the top candidates vying for the Los Angeles County Assessor’s office.
While the California Taxpayer Association’s Teresa Casazza focused on the implications of taxation at the state level, the upcoming June 3 primary election brought out assessor candidates Omar Haroon, John Morris, Jeffrey Prang, and John Wong to propose ideas about how to fix an office beset by problems. Incumbent John Noguez, who chose not seek reelection, is facing criminal charges in a public corruption case. BizFed members heard the ideas of assessor candidates to bring technical expertise, leadership experience, information technology infrastructure, and a business perspective to the assessor’s office if elected.
Casazza, president of the nonpartisan CalTax, said businesses pay the largest share of property taxes under Proposition 13. Noting that Proposition 13 has “stood the test of time,” she warned that proposals to create a split roll property tax system, which would treat business property different than property owned by homeowners, is an ill-advised idea that would stifle economic growth in the long term. Separate bills in the state assembly (AB 2372) and state senate (SB 1021) and a possible 2016 ballot measure would create a split roll system. Biz Fed members shared their perspectives with Casazza and the top assessor candidates, emphasizing the importance of Proposition 13. Casazza and BizFed members voiced concerns that a split roll could increase costs to businesses, which could result in higher prices on products and services that would make California business less competitive in national and global markets.
Casazza also said proposals that would result in higher local taxes, along with bills related to targeted taxes and cap and trade/carbon taxes could hurt businesses in the state. In addition, Casazza told BizFed members that significant spending increases in the state budget, the state’s long-term liabilities, and looming budget negotiations all deserve close attention.
