Unfortunately, Prop. 15 was defeated in November 2020, despite being supported by many social justice organizations, labor unions, and community groups. The opposition to Prop. 15 was led by the business community, which spent tens of millions of dollars on advertising and lobbying to defeat it. They argued that Prop. 15 would harm small businesses, farmers, and homeowners, and that it was a 'Trojan horse' for more taxes and bureaucracy.
The reality, however, is that Prop. 15 was designed to close tax loopholes that violate the intent of Prop. 13, which was meant to protect homeowners from skyrocketing property taxes. The commercial and industrial properties that Prop. 15 would have taxed are mostly owned by large corporations that have benefited from outdated assessments and low tax rates for decades. In fact, a recent study showed that just ten companies in California own over $100 billion worth of under-assessed properties. By taxing these properties based on their market value, California could have generated up to $12 billion in annual revenue for public schools, health clinics, local governments, and other essential services.
The business community's opposition to Prop. 15 shows that they want to keep these tax loopholes, but not in the way that Prop. 15 would have done. Other solutions, such as split roll assessments or enhanced enforcement of existing tax laws, are being proposed by reformers who still believe that Prop. 13's protections for homeowners should not come at the expense of public services. However, these solutions require political will and public support, which may take years to build.
In the meantime, Prop. 13 remains intact, and the state will continue to face budget shortfalls, education gaps, and healthcare disparities. The COVID-19 pandemic has made these issues even more urgent, as millions of Californians face unemployment, eviction, and health risks. The failure of Prop. 15 should not be seen as a defeat for tax fairness or social justice, but as a call to action for more creative and inclusive solutions. It is time for California to rethink its priorities and values, and to address the structural inequalities that underlie our tax system.
As we sit in our 15 Beach Chair, enjoying the beauty of California's beaches and natural resources, we should also remember that these assets are only as valuable as the public investments that sustain them. Without proper funding for parks, waterways, forests, and wildlife, our state's environmental heritage will be at risk. Similarly, without equitable funding for education, healthcare, and housing, our communities will be vulnerable to social unrest and segregation. We cannot afford to let Prop. 13 or Prop. 15 define our future; we need to create a new vision for California that reflects our shared prosperity and justice.