Four out of every 10 companies in Los Angeles will consider leaving California if voters approve the split-roll property tax initiative that has qualified for the November 2020 ballot, according to a Los Angeles County Business Federation poll
The split-roll initiative, which proponents call the Schools and Communities First Initiative
, would require reassessment of business and industrial properties to market value at a minimum of every three years. Proponents estimate that it would cost taxpayers $11 billion annually.
In the poll, respondents were asked: “Changes in California’s Prop 13 Makes 2020 Ballot: How will this affect your business?” A total of 62 percent of respondents said rents would increase, 53 percent said profit margins may decrease, and 40 percent said they would consider relocating their business outside of California.
“This poll illustrates how disastrous the split-roll initiative would be for Californians,” CalTax President Robert Gutierrez said. “Many businesses would leave the state, taking existing jobs and future career opportunities with them, and others would increase prices to cover the cost of the tax increase – a lose-lose situation for everyday Californians who want good jobs and a lower cost of living.”
Additionally, the poll found that for the ninth consecutive year, taxes and fees remain the top concern for Los Angeles County businesses. Since 2017, the tax and fee burden has been cited by 81 percent of respondents as the leading cause of businesses leaving Los Angeles County and California.