Editorial: California Prop. 15 would cause businesses to pay fair share of property taxes

The San Francisco Chronicle calls on California voters to vote YES on Prop 15. Despite California’s progressive legacy, the state still lies heavily flawed with its taxing system that rewards large corporations at the cost of homeowners and small businesses. Prop. 15 works to remedy this harm, while still protecting California’s most vulnerable tenants. 

The newest tower to rise near San Francisco's Transbay Transit Center (officially named Salesforce Transit Center), is 500 Folsom St. -- a 42-story residential highrise designed by Skidmore, Owings & Merrill. People began moving in to the lower floors early in 2020.John King/The Chronicle

For more than 40 years, California has endured a contorted property tax system

By Chronicle Editorial Board, San Francisco Chronicle | 9/11/2020

For all its progressive image, California has a lopsided revenue system that has evolved since a fateful vote in 1978 that redrew the rules on property taxes. That measure, known as Proposition 13, largely froze homeowner taxes, but it did the same for business holdings. When property changed hands, taxes could be reset, but that happened less often with commercial and industrial land when deals could be structured to avoid reassessment. The result: Businesses enjoyed low taxes while new homeowners faced higher levies as housing was resold.

Prop. 15 offers a solution to this unfairness. It calls for splitting the rolls, with residential property staying within the present protections while it sets more timely assessments for large business holdings. The heart of the original law that protects homeowners from sharp tax boosts will be saved. Businesses won’t get an undue break. Read More