RES-2020-125 RESOLUTION NO. 2020- 12 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM IN OPPOSITION TO PROPOSITION 15, THE SPLIT
ROLL PROPERTY TAX INITIATIVE
WHEREAS, on June 6, 1978, Proposition 13, officially titled the"People's Initiative to
Limit Property Taxation,"was overwhelmingly approved by California's voters, reducing
property tax rates on homes,businesses and farms, and capping the rate of tax increases in the
future; and
WHEREAS, on the same ballot, voters rejected Proposition 8,which proposed a"split
roll"property tax that for the first time in California history would have allowed the government
to distinguish between property owners based on the type of property owned; and
WHEREAS,prior to Proposition 13,rapidly rising inflation and subjective property
assessments led to an inequitable property tax system that forced families to sell their homes and
business owners to close their doors due to soaring property tax bills; and
WHEREAS, Proposition 13 provides more certainty for taxpayers with respect to their
property tax liability, eliminating the unpredictable year-to-year changes that occurred under the
system it replaced; and
WHEREAS, Proposition 13 provides a stable revenue source for the government, in
contrast to the volatile personal income tax, which California heavily relies upon for revenue;
and
WHEREAS, Proposition 13 allows businesses to flourish and grow by providing a more
stable business climate in the state; and
WHEREAS, with exponentially rising costs of living in the state of California,
Proposition 13 makes it easier for families to achieve the American Dream of home and business
ownership; and
WHEREAS,property tax revenue in the state of California grew significantly following
the passage of Proposition 13, with the 2019-20 assessors' rolls reporting taxable property value
of$6.6trillion in the state, suggesting property tax revenue of at least $72.5 billion,plus billions
more for local levies used to repay bonds, including school bonds; and
WHEREAS,under Proposition 13, assessed values can increase due to changes in
ownership, new construction, and an annual adjustment for inflation that is limited to 2%per
year to protect property owners while still providing additional revenue for local governments;
and
WHEREAS,homeowners have been beneficiaries of Proposition 13, as their cumulative
share of the total property tax burden has gone down more than 5% since its passage, from
41.84%in 1979-80 down to 36.65%in 2016-17; and
WHEREAS, Proposition 13 remains very popular with voters today with recent surveys
citing that 65%of likely voters support Proposition 13; and
WHEREAS,proposed alternatives to Proposition 13 that would increase property taxes
on California businesses would likely harm the ability of employers to hire or retain California
employees and could lead to more businesses and jobs leaving the state; and
WHEREAS, proposed alternatives to Proposition 13 could negatively affect renters, who
would see their rents increase as landlords experienced higher operating costs and passed these
costs down to their tenants; and
WHEREAS,proponents of the tax increase initiative qualified for the November 2020
ballot seek to undermine and remove taxpayer protections provided by Proposition 13 by
requiring businesses to pay higher property taxes than all other property owners; and
WHEREAS, the"split roll"initiative could increase the cost of food by increasing
property taxes on agricultural buildings and some crops; and
WHEREAS, the County Assessors' Association found that the"split roll"initiative
would result in a net loss of revenue for some counties due to the cost of newly created
exemptions for select property owners; and
WHEREAS, assessors repeatedly have stated that the"split roll"initiative would be
impossible to implement given unavailability of data needed to administer the proposed
exemptions,unavailability of qualified candidates to fill the approximately 900 new government
positions that would be needed, and the limited timeframe set by the initiative; and
WHEREAS, since the passage of Proposition 13, voters have rejected,by wide margins,
changes that would have businesses pay property taxes at a higher rate than those imposed upon
residential owners, as evidenced by the defeat of Proposition 167 in 1992.
NOW, THEREFORE, BE IT RESOLVED, that in recognition of the benefits that
Proposition 13 provides for all property owners and California's economy, the Anaheim City
Council opposes the split roll property tax increase, Proposition 15 on the November 3, 2020
ballot, and reaffirms its support for Proposition 13 for all property owners.
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THE FOREGOING RESOLUTION is approved and adopted by the City Council of the
City of Anaheim this 6th day of October 2020,by the following roll call vote:
AYES:Mayor Sidhu and Council Members Faessel, Kring, and O'Neil
NOES: Council Member Moreno
ABSENT: None
ABSTAIN: Council Members Barnes and Brandman
CI r� ANAHEI I
AAA
A ' •f' OF TH I OF ANAHEIM
ATTEST:
CITY CLERK 0 THE CITY OF ANAHEIM
CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM
I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Resolution No. 2020-125 adopted at a regular meeting provided by law, of the Anaheim
City Council held on the 6th day of October, 2020 by the following vote of the members thereof:
AYES: Mayor Sidhu and Council Members Faessel, Kring, and O'Neil
NOES: Council Member Moreno
ABSENT: None
ABSTAIN: Council Members Barnes and Brandman
IN WITNESS WHEREOF, I have hereunto set my hand this 7th day of October, 2020.
1110
CITY CL -K OF THE CITY OF ANAHEIM
(SEAL)