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HomeMy WebLinkAbout2020-82 - Opposing California Proposition 15, Entitled, "Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative (2020)”RESOLUTION NO. 2020-82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, OPPOSING CALIFORNIA PROPOSITION 15, ENTITLED, "TAX ON COMMERCIAL AND INDUSTRIAL PROPERTIES FOR EDUCATION AND LOCAL GOVERNMENT FUNDING INITIATIVE (2020)" WHEREAS, Proposition 15 would amend the California Constitution to require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value, rather than their purchase price; 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; 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 discriminate against property owners based on the type of property owned; WHEREAS, Proposition 15 would repeal long-standing Proposition 13 protections for business properties and raise property taxes for commercial and industrial properties; WHEREAS, for more than 40 years, Proposition 13 has provided certainty to homeowners, farmers and businesses that they will be able to afford their property tax bills in the future; WHEREAS, Proposition 15 would eliminate the certainty of property taxes for businesses and farmers by repealing current Proposition 13 protections for commercial and industrial property and requiring reassessment at current market value at least every three years; WHEREAS, Proposition 15's higher property taxes could translate to soaring rents for the majority of small businesses who do not own the property on which they operate; WHEREAS, Proposition 15 could negatively affect renters, who would see their rents increase as landlords experience higher operating costs and pass these costs on to their tenants; Resolution No. 2020-82 Page 2 of 3 WHEREAS, Proposition 15's property tax increases would harm the ability of employers to hire or retain California employees and lead to more businesses and jobs leaving the state; WHEREAS, Proponents of Proposition 15 seek to undermine and remove taxpayer protections provided by Proposition 13 by requiring businesses to pay higher property taxes than all other property owners; WHEREAS, the "split -roll" initiative would increase the cost of food by increasing property taxes on agricultural buildings and some crops; 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 the unavailability of data and employees needed to administer the proposed exemptions, and the limited timeframe set by the initiative. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby oppose Proposition 15 and supports maintaining current Proposition 13 protections. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Resolution No. 2020-82 Page 3 of 3 Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 22nd day of September, 2020. ATTEST: Will O'Neill Mayor Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2020-82, was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 22nd day of September, 2020; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon NAYS: None ABSTAIN: Council Member Joy Brenner IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 231d day of September, 2020. 4A�JiMN� Leilani I. Brown IF City Clerk Newport Beach, California ��-ORNA'