SUPPORTING SMALL BUSINESSES
Even in the best of times small businesses struggle to compete against wealthy corporations like Amazon that pay little or nothing in taxes while making billions in profits. But these are not the best of times. The COVID-19 pandemic has compounded the struggle of small businesses to survive and pushed far too many over the edge.
THE SOLUTION: PROP 15 SUPPORTS
Prop 15 exempts small businesses and cuts their taxes to help them recover and rebuild. Prop 15 closes loopholes benefiting big corporations so we can invest in small business tax relief, cutting the taxes they pay on things such as equipment, machinery, supplies, and more. According to an analysis of Prop. 15, only 10% of the most valuable commercial properties would generate 92% of the revenue.
Prop 15 protects small businesses by specifically exempting all small businesses operating out of homes. According to the California Department of Industrial Relations over half of all small businesses are operated in homes.
For small business that operate outside of homes in commercial or industrial properties, Prop 15 exempts small businesses owning non-residential commercial and industrial property worth $3,000,000 or less. As a result of this exemption, owners of 65% of all nonresidential commercial and industrial properties will see no change in their property taxes from Prop 15.
For small businesses that rent, many will be unaffected because they rent in the 65% of all business properties that are exempted from Prop 15 or in properties whose owners already are paying their fair share.
REMEMBER: Landlords who try to increase rents after their loopholes are closed will risk losing their tenants who can relocate to other buildings unaffected by Prop 15 or whose landlords want to fill their vacant spaces. Prop 15 gives small business renters more time to consider their options by providing them an extended phase-in.
By closing loopholes benefiting wealthy corporations, Prop 15 helps small businesses compete by leveling the playing field.
According to a new Beacon Economics report commissioned by the Silicon Valley Community Foundation, Prop. 15 “will not impact small business renters, including triple net lease tenants” and “most claims about Proposition 15’s impacts on small businesses are unfounded.” What's more, it reinforces the fact that "the burden of Prop. 15 would fall on the state's largest corporations and highest-value properties."