Asian Business Association says Prop 15 does not protect small business owners
SAN DIEGO (KUSI) – Proposition 15 will be one of the most watched propositions on the November 2020 ballot.
If passed, Prop 15 would require commercial and industrial properties to be taxed based on their market value, rather than their purchase price.
Supporters of the proposition claim it only forces the wealthy to pay their fair share, while opponents are adamant that the proposition will be detrimental to small businesses across the state.
CEO of the Asian Business Association, Jason Paguio, told KUSI’s Lauren Phinney that Prop 15 “is the wrong tax at the wrong time.” The Asian Business Association, and many other business minded groups believe raising taxes on Californians in the middle of a pandemic could permanently close many small businesses already struggling to stay open.
Paguio explained that “Nearly 80% of small businesses across the state are renters, if you rent and don’t own property in California, then you are not classified as a small business owner, and not protected from Prop 15’s huge tax increases.”
Paguio shared some real life examples of the huge tax increases people will see if Prop 15 passes. “Latino owned small businesses like Los Taquitos in Chula Vista, will see a 77% tax increase with those costs passed down to them. Davina’s grill, a women-owned business in Oceanside’s downtown, will see their tax increase go from $32,000 to over $60,000, a 188% increase in just one year.”
Touching on the re-assessment aspect of Prop 15, Paguio explained, “restaurants like Las Cuatro Milpas in Barrio Logan, features mixed-use retail and residential, and they’ll be reassessed.”