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CC RES 2020-058 RESOLUTION NO. 2020-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, OPPOSING PROPOSITION 15, THE CALIFORNIA SCHOOLS AND LOCAL COMMUNITIES FUNDING ACT OF 2020, IN THE NOVEMBER 3, 2020 ELECTION 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, Proposition 13 capped property tax to no more than one percent of the purchase price (at the time of purchase) with an annual adjustment of two percent, providing taxpayers with a new measure of certainly with respect to their annual property tax payments; and 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; and WHEREAS, a proposed statewide Proposition 15, if approved by California voters on November 3, 2020, would amend Proposition 13 to base the tax assessment of commercial and industrial properties worth more than $3 million on the current market value not the purchase prices; and WHEREAS, Proposition 15 would eliminate those Proposition 13 protections for commercial and industrial properties, creating a split tax roll; and WHEREAS, This new "split-roll" tax system would increase the property taxes for commercial and industrial property owners, placing an undue economic burden on owners and potentially lessees; and WHEREAS, California's small businesses are already struggling through an unprecedented economic crisis and millions of Californians are out of work; and WHEREAS, Proposition 15 small business exemptions will not protect the majority of small business in the City of Rancho Palos Verdes from the largest property tax increase in California history; and WHEREAS, Proposition 15 increases the cost of goods, services, and living for the residents of the City of Rancho Palos Verdes NOW, THEREFORE, the City Council of the City of Rancho Palos Verdes does hereby resolve as follows: Resolution No. 2020-58 Page 1 of 2 Section 1: The City of Rancho Palos Verdes hereby opposes Proposition 15, initiative Constitutional Amendment known as the California Schools and Local Communities Funding Act of 2020. The City Council finds that residents and businesses in Rancho Palos Verdes would be negatively impacted due to the rise in business and corporate property taxes, with businesses having to pass the financial burden onto residents by raising prices and increasing the cost of living. PASSED, APPROVED and ADOPTED this 20th day of October 2020. Johnl uikshank, Mayor Attest: C442Afr--- tadr mily Colborn, City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2020-58 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on October 20, 2020. jcP/4'Emily Colborn, City Cler Resolution No 2020-58 Page 2 of 2