Election Call To Action Vote No on Prop. 15
YOUR IMMEDIATE ATTENTION REQUIRED -
YOUR BUSINESS IS ON THE LINE!
Sacramento, CA - With mail-in ballots arriving and the airwaves filling with messages we are asking for your immediate attention to Proposition 15 - The Split Roll Tax.
Split Roll is just that in simple terms. It splits commercial property taxation from the residential protections provided by Prop. 13. As if the pandemic and California's tax and regulatory environment were not difficult enough, this proposition, should it pass, would be devastating.
MRA exists to educate, inform, and protect our members. Our roll here given our limited resources is to ask you not only to vote NO on prop 15, but make it a priority to spread the word to your patrons, vendors, friends and family - all those that rely on a healthy marina industry for their wellbeing.
This is the single most important legislative issue for marina owners in many years. The additional cost to marina owners would be crippling.
See details on how Prop 15 Impacts Marina Owners Specifically Below.
What can you do to help defeat Prop 15?
*Vote no
*Ask your friends and family to vote No
*Send this call to action to your customers, vendors, fellow business owners, etc. email contacts right away and ask them to vote no and spread the word.
Take a look at the websites where you can add your voice and make a contribution.
www.associationofwesternemployers.com/stoptaxes
https://noonprop15.org/take-action/
This is already slated to be a big money fight, but these battles are won in the trenches and our membership must work together to support the major campaigns on the grassroots level. Propositions are decided by the voters, so spread the word.
HOW WOULD PROP 15 IMPACT MARINA OWNERS SPECIFICALLY?
For many marinas, property taxes are already the largest single operating expense. Depending on when the marina was purchased, this proposition could double (if not more) the largest single expense item, eating up much of the remaining cash flow after debt service. Municipally owned marinas not under long term lease arrangements might be exempt putting privately owned (or leased) marinas at a tremendous disadvantage.
Two concerns raised about appraising a commercial property on its highest and best use (such as a hotel or multi-family residential) and taking into consideration the value of the possessory interest are implied in the "fair market value" re-appraisal every 3 years.
The Split Roll Ballot Initiative would:
*Create a "split roll" where commercial and industrial properties would be assessed at Fair Market Value (to be determined by the County Appraisers) starting with a phase-in in 2022-23. The exact nature of the phase in would be determined by the legislature. Commercial and industrial properties would then be re-appraised by the appraiser every 3 years.
*Raise taxes to commercial/industrial property owners by $11.5 billion annually.
*Exclude residential, residential rental and some agricultural properties
*Exclude properties with a value under $3 million, but this of course is a very low threshold for commercial properties and specifically marinas.
*Will have the FMV reassessment phased in starting in 2025-26 for properties occupied 50% or more by small businesses. However, the definition of "small business" is so narrow the only buildings that would likely qualify are buildings where the actual owner occupies 50% or more of the property and is a stand-alone California entity (cannot be owned or controlled by another entity) and has 50 or fewer employees. This would not apply to a marina, except perhaps for a small management office occupied by the marina owner.
*Eliminates personal property taxes on the first $500,000 of equipment and any other personal property. This is somewhat of a red herring since taxes on these amounts are minor compared to the real property taxes.
Thank you,
Scott Robertson
MRA President