Tuesday, May 29, 2012

California Small Businesses Can't Afford 'Split Roll' Tax

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BOMA San Francisco Members:

Art Swanson, President of the San Francisco Small Business Network, wrote an opinion editorial published in the San Francisco Chronicle's Open Forum section titled, California can't afford 'split roll' tax.

BOMA San Francisco members couldn't agree more.

Our organization's members appreciate Mr. Swanson's small business perspective on the subject of a Proposition 13 amendment to 'split' the tax roll. At present, residential and business properties are treated equally under the property tax code. Recent attempts in the California Legislature to split the property tax roll, i.e., assess business properties at a higher tax rate than residential properties, have not been successful. There is a good reason for the unenthusiastic reception from California's elected leaders in Sacramento: the state's fragile economic climate cannot absorb another tax increase on business properties that will directly impact job producing small businesses in California.

Indeed, if a split roll amendment to Proposition 13 passed, small business entrepreneurs would be forced to lay off personnel or close altogether as they will be literally taxed out of their rented space. This is an important fact as our members' buildings and San Francisco's charming neighborhood commercial corridors are filled with hundreds of small business tenants that are requisite to maintaining the the economic vitality of San Francisco and to fund the City's essential social services. To tax business properties differently than residential is imprudent when California is competing nationally for businesses - and the jobs that come with them - to locate to the state.

Thank you Mr. Swanson for providing your expert opinion on this subject.

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