Introduction to Prop 15 (2020)

Originally shared October 21, 2020

Our chance to restore $12 billion back into our schools and communities and build a more equitable future for Black, Latinx, Indigenous, AAPI, and working-class communities in California.

In 1978, Proposition 13 was passed to limit property tax rate increases in California. Prop 13 effectively froze property tax rates based on their 1978 values. The biggest beneficiaries of Proposition 13 have undoubtedly been corporations and wealthy investors. Corporations especially have benefited by avoiding paying more than 1% of the original purchase value in property taxes. Universal Studios, for instance, has avoided paying $36 million a year in property taxes, while Chevron uses Prop 13’s loophole to evade $100 million a year.

The growing wealth of corporations has been at the expense of marginalized Black, Latinx, and other communities of color. This disproportionately harmed communities of color, who relied on public schools and utilized programs such as public transit and libraries. After Prop 13 was passed, local revenue fell by nearly 60 percent. California has dropped from 7th in per pupil funding to 39th since Prop 13 was passed.

What will Prop 15 do?

Proposition 15, also known as the Schools and Communities First Act, will require that commercial & industrial properties worth over $3 million combined per owner simply be reassessed every three years. They will be assessed under fair market value. It will NOT impact residential and agricultural properties. Small business owners with property under $3M, homeowners, apartment buildings, and agriculture will all be excluded.
Mixed-use properties where greater than 75% is used for residential purposes are also excluded.”

What does this mean for our communities?

By closing the property tax loophole that corporations have taken advantage of, Prop 15 will reclaim $12 billion annually for our public schools and local communities. Students will have the support they deserve such as counselors, school nurses, teachers and up to date technology. This will also fund critical services we depend on such as affordable housing, homeless services, libraries, public transportation, firefighters and first responders.

94% of the revenue will come from just 10% of the top commercial properties. How will the funding be distributed?

40% of the annual revenue will go into public schools.

• 89% will go to K-12 and 11% will go to community colleges.
• Through the Local Control Funding Formula guidelines, there are equity guidelines that prioritize the communities most in need of funding.

60% of the annual revenue will go into local government.

• How to spend the reclaimed revenue will be decided at the local level in cities, counties, and school districts as unrestricted funds.
• How revenue was received and spent must be published to ensure accountability.

How to support Prop 15 for this upcoming election: Join our phone and text banks! RSVP at aapiforce-ef.org/volunteer. Show your support on social media! Share #YesOn15 and #SchoolsandCommunitiesFirst on your posts. Vote! Make sure you’re registered to vote at aapiforce-ef.vote. Donate to the website: yes15.org.

Sources:

• The Hollywood Reporter: Disneyland Tax Bill May Be About to Skyrocket.
• The San Francisco Foundation: Policy Brief: Impacts on the 5-County Bay Area from Commercial Property Tax Reform.
• Newsweek: This California Property Tax Loophole Must Be Fixed.
• Yes on Prop 15 Supporter Toolkit.
• AAPI FORCE-EF: Yes on Prop 15 — We Pay More When Corporations Don’t Pay their Fair Share of Taxes.