LIE #1: “This is an attack on homeowners”

FACT: Closing the corporate loophole in Prop. 13 DOES NOT affect homeowners or residential property in any way. In addition, reforming Prop 13 will restore balance and fairness to property taxes, since homeowners now pay 72% of property taxes while commercial properties only pay 28%.

LIE #2: “This will hurt small businesses”

FACT: Commercial rents for large and small businesses are determined by the market, not by the property taxes a landlord is paying. If Prop. 13’s corporate loophole was keeping rents low, California would have the lowest commercial rents in the country. We all know this is not the case.

LIE #3: “Prices will increase”

FACT: The prices of goods and services are determined by the free market, not property taxes. The cost of an item at Target or Walmart has nothing to do with the property taxes each individual store is paying. This is the same for the price of gas, groceries or anything else. In fact, even though Disneyland is still paying property taxes based on 1970s land values, ticket prices have increased more than 1000% since then.

Furthermore, we are paying the price every day for Prop 13’s corporate loophole. Since 1978, the residential share of property taxes has skyrocketed from 55% to 72%. Meanwhile, the share of property taxes paid by commercial property has declined. We’re also being nickeled and dimed by other fees and taxes, like sales taxes and parcel taxes, in order to make up for the lack of commercial property tax.

LIE #4: “Businesses will leave California”

FACT: This is completely untrue. Most businesses are already paying property taxes at fair market value. Only a small number of commercial property owners are still paying property taxes based on what their land was worth 3 or 4 decades ago. The fact is that the current system puts newer businesses at a competitive disadvantage. Closing Prop. 13’s corporate loophole will benefit new businesses and foster entrepreneurship by leveling the playing field so that all property owners are paying their fair share.

Lie #5: “Commercial rents will increase and hurt small businesses”

Fact: Small businesses will not be negatively impacted by Prop. 13 reform. Rent prices are determined by the market, and have no association to the land's property taxes. We can see right in front of us that the current system does not keep rents low. If the corporate loophole kept rents low, we would have the lowest rents in the country. We've had enough lies and disinformation - Prop. 13 reform will not hurt small businesses.

California’s economy needs world class schools, strong infrastructure and thriving communities. The best way to do this is for large commercial property owners pay their fair share.