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File Number: 20-422 <br />Whereas, California’s current property tax system allows some commercial and industrial <br />properties to avoid regular reassessment because changes in ownership have been hidden from <br />transparent disclosure; and <br />Whereas, academic researchers at the University of Southern California (USC) <br />demonstrated that a majority of commercial property owners in California already pay close to <br />market value, making the current system inequitable among businesses, benefitting large owners <br />who have held land for long periods of time; and <br />Whereas, such practices result in millions of dollars of forgone governmental revenue that <br />would otherwise help to support the provision of essential services in local communities; and <br />Whereas, according to the California Legislative Analyst’s Office, Proposition 15, <br />otherwise known as the California Schools and Local Communities Funding Act of 2020, could <br />reclaim up to $12.5 billion in property tax revenue every year by reassessing commercial and <br />industrial properties at market rates; and <br />Whereas, if authorized by voters, Proposition 15 would not directly affect property taxes for <br />homeowners or renters because it exempts residential property; and <br />Whereas, the measure would provide billions of dollars in new locally-controlled property <br />tax funding yearly for cities, counties, and special districts, including potentially over $8 million in <br />recurring annual revenue for the City of San Leandro once the measure is fully implemented; and <br />Whereas, the measure provides new tax incentives to spur new investment in small <br />businesses by eliminating the business personal property tax on equipment for California’s small <br />businesses; and <br />Whereas, the measure provides billions for cities, counties, and special districts in locally <br />controlled revenues that could be used for affordable housing, essential services and emergency <br />response, health and human services, libraries, public infrastructure, and more; and <br />Whereas, the measure also exempts all small business owners whose property is worth <br />less than $3 million; <br />Whereas, the measure levels the playing field for businesses and commercial property <br />owners; and <br />Whereas, now more than ever, in light of the national and state economic crisis <br />precipitated by the COVID-19 global pandemic, California’s local communities need additional <br />revenues for their continued provision of services. <br />NOW THEREFORE, the City of San Leandro City Council hereby RESOLVES that the <br />City Council endorses the successful passage of Proposition 15: the California Schools and <br />Local Communities Funding Act of 2020, a measure on the California ballot in November 2020, <br />Page 2 City of San Leandro Printed on 9/23/2020 <br />158