Slim majority of Californians supports raising property tax on large businesses, poll says
Just over half of likely voters say they support a ballot measure to increase property taxes for many businesses, according to a poll released Wednesday by the Public Policy Institute of California.
The measure would undo part of a law passed by voters in 1978 that bases all property tax assessments in California on purchase price.
This year’s measure, which will appear on November ballots as Proposition 15, would change the law for commercial and industrial properties worth more than $3 million and tax them based on their current value, effectively raising taxes on many businesses.
It’s often called the “split roll” measure because it would divide property tax rolls between residential and commercial properties by taxing them differently.
Supporters, including top California Democrats and labor unions, say the current law unfairly benefits big businesses and argue schools and local governments should receive more tax revenue from those corporations.
Business groups that oppose the measure argue raising taxes on them will drive up prices for everyone and deal a hit to the economy already reeling from COVID-19.
The PPIC poll found 51% of likely voters support the measure, 40% oppose and about 9% are undecided.
Although the slim majority in support falls within the poll’s margin of error — plus or minus 4.3% for likely voters — the results are a good sign for the campaign supporting Proposition 15, spokesman Alex Stack said.
“It’s really encouraging,” Stack said. “We’re doing a good job of controlling the narrative and making sure folks know this about closing those corporate tax loopholes and benefiting those most in need.”
About 72% of Democrats said they support the measure, while 46% of no-party-preference voters and just 17% of Republicans do.
“Once voters know that Prop 15 is the largest property tax hike in California history, is the first step to undoing Prop 13 in its entirety and is a tax we will all pay, they overwhelmingly reject the measure,” No on Proposition 15 co-chair Rob Lapsley said in a written statement.
Although the measure would not affect residential property rates, the opposition campaign has targeted homeowners in particular with its argument that those rates could be targeted for an increase next.
The PPIC found that 47% of homeowners and 56% of renters support Proposition 15.
“Californians are divided on Proposition 15, with Republicans and Democrats, younger and older voters, and renters and homeowners showing widely different support for this tax and spending initiative,” PPIC President Mark Baldassare wrote in a statement.
PPIC surveyed 1,168 likely California voters by landline or cell phone from September 4-13.