It’s not that Mayoral Hopeful Phil “Tax Man” Ting does not believe that Proposition 13 needs to be reformed, because he certainly does. And he’s heading up a campaign to prove it.
It’s that one wonders (but only momentarily) exactly how much of an impact our city assessor will be able to have on this statewide issue.
By way of background, Prop. 13 is a ballot initiative passed in 1978 that limits
property-tax increases to 2 percent of the original assessed amount of the property. It applies to commercial real estate and residential
property. Since at least the 1990s, folks have been trying to reform Prop. 13 to eliminate or limit the protections on commercial real estate. This proposal, called “split roll,” has once again emerged amid the rubble of our state budget as a possible reform that would bring in revenue without hurting
homeowners.
I’m sure you see how this debate goes — this state ain’t big enough for the both of us! Businesses will leave if they are taxed any further, and workers will leave if schools and services in the state continue to deteriorate.
Prop. 13 is ripe for amending, eliminating or hanging in effigy at any statewide election in the near future, which brings me to my initial issue: Ting knows the ins and outs
of revenue in San Francisco like no other, and changing
Prop. 13 is a great rallying point for a tax assessor running for mayor, but it will take a statewide effort to change Prop. 13.
On Tuesday, the Board of Supervisors passed a resolution endorsing the “split roll” approach to Prop. 13. (Here: Download Prop 13 Resolution.) That,
plus Ting’s crusade, plus $693 will net you a permit for a
skating rink.
Blah blah blah, Mr. Ting. That's the easy one to fix, but will have the least effect on revenue in the state, especially since most of the Prop 13 generated revenue stays in the local municipality anyway. Should we do it? Absolutely. But don't run a campaign of "stop offering half measures" and "political rhetoric" with this being your answer.
Prop 13 as a whole generates less than 5% of total revnues for the State, so I feel comfortable in saying that the Business side of Prop 13 generates no more than 2% of total revenue (it's probably more like 1%) so even if you succeeded in doubling the tax rate, which you wouldn't be able to do, you would raise revenue in the state this year about $750 Million-$1 Billion.
We're $42 Billion short. It's time for some big ideas from our politicians, not more "half measures." Take on Prop 13 - all of it - from the residential property tax, the business property tax, and the 2/3 vote to increase taxes. Then you can call yourself a reformer and you will have my vote.
Posted by: vansmack | June 11, 2009 at 14:21
Proposition 1A of the May 19 special election lost in all neighborhoods. Yet Mistermayor, Assessor Ting and Supervisor Avalos all want to raise taxes and disguised taxes know as fees. They should take a hint for the May election results. Raising taxes, especially when a lot of people are out of work or are having their hours reduced, is a loser.
Three decades of "progressive" control has led to this budget mess. The government simply can't afford to be everyone's nanny.
Posted by: Howard Epstein | June 11, 2009 at 15:36
Businesses will leave California because they have to pay taxes? Pfffft! That's like fish five days old -- I ain't buying it. They've been using that simplistic, tired, empty threat on the local, statewide, national, international, and intergalactic levels since before the beginning of time. I say we call their bluff and then laugh in their frazzled, helpless faces. The logistical costs of leaving California, physically establishing their business in another state, hiring new workers and cultivating a new customer base is infinitely more expensive than paying their fair share for once in their lives.
In addition, so what if they leave California and pack up to a different state (which they won't do). This isn't some sort of sports team with free agents n' shit. The sanctity and well-being of humanity is universal. Arizona and Oregon and Texas and Mexico and Zaire need businesses just as much as California, if not more so.
Posted by: Matt | June 11, 2009 at 16:54
By the way, Sweetie Melissa, I forgot to mention that you are extremely hugworthy (or, in Mattspeak, extremely worthy of receiving hugs).
Posted by: Matt | June 11, 2009 at 17:09