As an organization representing business, we at Tahoe Chamber are keeping a close eye on a measure being proposed for the November 2020 general election ballot in California. It’s called the “Split Roll” initiative because it would establish a higher rate for business property taxes, effectively removing business property from some of the protections of Proposition 13.

According to the California Chamber of Commerce (Cal Chamber), “Although split roll is described by its proponents as ‘tax reform,’ it is really just a targeted tax increase on business – potentially to the tune of $10 billion per year. Since the goal of government unions and progressive advocacy groups is a large tax increase, their strategy is to target increased taxes on businesses as more politically viable than general tax hikes on California residents. Of course, increased business taxes ultimately are passed on either to consumers as higher prices, to employees as less compensation, or to the general community as less business activity, and so are – under any circumstances – harmful to California’s economy.”

The idea of a split tax roll has been consistently rejected since the passage of Proposition 13 in 1978. One such proposal made it to the ballot in 1992 but was soundly defeated. A recent poll showed support for a split roll initiative has dropped below 50%, even before the launch of a serious opposition campaign. Nonetheless, Tahoe Chamber will remain vigilant and active on the issue. Our Government Affairs Committee will soon formally consider the matter.

For more information and background, please contact Steve Teshara, Tahoe Chamber CEO at steve@tahoechamber.org.