Small Business
California’s Property Tax Loophole Hurts Small Businesses
Small businesses are the backbone of local economies and help our communities thrive.
Sadly, California’s tax laws hurt small businesses by allowing large commercial real estate owners to avoid paying their fair share of local property taxes. This Corporate Property Tax Loophole is a huge giveaway for wealthy investors and large corporations. It has also decimated funding for California schools and public services for the past 40 years.
The loss in revenue from commercial property taxes has forced cities and counties to increase fees and taxes on small businesses. It has also encouraged the development of big box stores that collect more sales revenue, at the expense of small businesses.
California has a broken and anti-competitive property tax system. Small businesses are paying more than their fair share, while large corporations benefit from this corporate loophole!
Increased Protections for Small Businesses
It is long past time to close the corporate loophole. Doing so will protect and preserve California’s small businesses by leveling the playing field and restoring $12 billion to schools and public services.
When large corporations don’t pay their fair share, small businesses are forced to pay more.
Important Note: This will not increase rents
For small business owners who don’t own their property, closing the corporate loophole will not cause rents to increase. If the corporate property tax loophole kept rents low, then California would have the lowest rents in the country. The truth is, there is no relationship between low rents and under-assessed properties. Rents are determined by the market, not by the property taxes paid by large landowners.