CC 03-06-2018 Oral Communications(
SC o o · s & COMM UNIT E
The California Schools and Local Communities Funding Act of 2018 will restore over $11 billion per
year to California's schools, community colleges, health clinics, and other vital local services.
Join the League of Women Voters of California, PICO California, California Calls, Advancement
Project California, Evolve California, Common Sense Kids Action, Alliance San Diego, the Coalition for
Humane Immigrant Rights of California (CHIRLA) and the California Federation of Teachers to fund
California schools by closing the Corporate Property Tax Loophole in Proposition 13 while continuing
to guarantee protections for homeowners, residential renters, agricultural land, and small businesses.
We can no longer afford to keep giving billions of dollars in tax breaks to millionaires, billionaires and
big corporations. Closing California's commercial property tax loophole restores $11 billion for schools,
community colleges and other vital community services, including emergency responder services,
parks, libraries, health clinics, trauma centers, affordable housing , homeless services, and roads.
The California Schools and Local Communities Funding Act of 2018:
Restores over $11 billion a year for services that all Californians rely on like schools and community
colleges. $4.5 billion will support K -12 education and community colleges. The remainder will be
shared by counties, cities and special districts to support community services, including health
clinics, trauma care and emergency rooms, parks, libraries and public safety.
Reforms commercial property ta_xcs, while guaranteeing existing protections for residential property
and agricultural land.
Closes the millionaire, billionaire, and big corporation tax loophole by requiring all commercial and
industrial properties to be assessed at fair market value, putting California on par with how the vast
majority of the country assesses these properties. California's commercial property taxes will still be
among the lowest in the country because of Proposition 13's limits on property tax rates, which this
initiative does not change.
Mandates full transparency and accountability for all revenue restored to California from closing the
commercial property tax loophole.
Benefits small businesses in three ways: it exempts owner operated small businesses from
reassessment until they are sold, it levels the playing field so small businesses can compete more
fairly with big corporations, and it reduces their taxes by eliminating the property tax on fixtures and
equipment (the business personal property tax) for all small businesses.
Places California on par with how the vast majority of states treat commercial property by assessing
them at fair market value. This initiative only affects under-valued commercial properties, creating a
level playing field for those businesses that already pay their fair share. And California's commercial
property taxes will still be among the lowest in the country because of Proposition 13·s cap on tax
rates, which the California Schools and Local Communities Funding Act does not change.
SchoolsandCommunitiesFirst.org ~ info@schoolsandcommunitiesfirst.org
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SCHO OLS&
COMM UNITIES Fl r~ST
The California Schools and Local Communities Funding Act reclaims $11 billion robbed from
our schools and neighborhood services because of the Prop 13 corporate tax loophole. Th is
measure protects homeowners and renters while taxing undervalued commercial land at fair
market value, creating a level playing field among businesses and ending the unfair advantage
given to big corporations.
Schools and Communities First is a broad statewide coalition of community, faith and labor
organizations who have joined together to restore funding to schools and critical services and
make our tax system fair.
Schools and Communities First Executive Committee
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February 20, 2018
Initiative 17-0055 (Arndt. #1)
The Attorney General of California has prepared the following title and summary of the chief
purpose and points of the proposed measure :
REQUIRES CERTAIN COMMERCIAL AND INDUSTRIAL REAL PROPERTY TO BE
TAXED BASED ON FAffi-MARKET VALUE. DEDICATES PORTION OF ANY
INCREASED REVENUE TO EDUCATION AND LOCAL SERVICES. INITIATIVE
CONSTITUTIONAL AMENDMENT. Taxes certain commercial and industrial real property
based on fair-market value-rather than, under current law, the purchase price with limited
inflation . Exempts agricultural property and certain small businesses . Dedicates portion of any
increased revenue to local services and to supplement, not replace, state 's minimum-funding
guarantee to schools . Provides tax exemption for $500,000 worth of tangible personal property
used for business and all personal property used for certain small businesses . Summary of
estimate by Legislativ e Analy st and Director of Finance of fiscal impact on state and local
government: Net increase in annual property tax revenues of $6.5 billi on to $10.5 billion in
most years, depending on the strength of real estate markets. After paying for county
a dm in istrative cos ts and backfillin g state in come tax losses rel a te d to the measure , the
re maining $6 billion to $10 billion w ould be allocated to schools (4 0 percent) and other
local gov ernments (60 percent). (17-0055 .)