[vc_row][vc_column width=”1/1″][vc_column_text width=”1/1″ el_position=”first last”]The Torrance Area Chamber of Commerce (TACC), during its September Governmental Affairs Policy (GAP) meeting, voted to oppose the LA City Council’s Resolution to include in the City’s 2013-14 State Legislative Program support for any state legislation that would implement commercial property tax reform that will require non-residential commercial properties to be reassessed regularly, while maintaining Proposition 13 protections for residential properties and small businesses.
While the Resolution makes note of protecting small businesses, the TACC is deeply concerned about how exactly small businesses will be protected by Prop 13 reform. Many small businesses lease property from commercial property owners and any tax increases imposed on such property owners will likely be passed on to the business tenants leasing the property.
TACC President & CEO, Donna Duperron, is concerned that a growing trend to reform Prop 13 could end up causing many small businesses to cut jobs, or worse, go out of business. The Culver City Council is set to vote on a similar resolution at the end of October. “Reforming Prop 13 to force commercial property owners to have their property reassessed annually will dramatically affect small business. Small businesses typically rent space from commercial property owners, who normally pass on any tax increases in their rent. Should the intent of this resolution become legislation, it would actually be a tremendous burden on small business.”
The Resolution was passed to be added to the LA City’s 2013-14 Legislative Program on August 26th with only one week remaining in the 2013-14 Legislative session. The late addition, with only five days left in the session and no options for the Legislature to address Split Roll Property tax with formidable legislation, is questionable. The Resolution may serve as an inconsequential vote to appease anti-Prop 13 activists or as a posturing strategy heading in to 2015-16.
The TACC is dedicated to being a collaborative partner in the community to negotiate and problem solve solutions to issues in order to promote the economy. Should legislation attempts occur in the upcoming 2015-16 legislative session, the TACC will work with community groups and leaders alike to advocate that any Prop 13 reform should not be at the cost to small business. Rob Van Lingen, Torrance Business Owner and Chair of the TACC GAP group, is not unwilling to problem-solve Prop 13 compliance issues. “The TACC does not approach issues unwilling to work together and be collaborative with all voices in the community. I believe LA City’s Split Roll Resolution intends to encourage reform that would protect small business, however, it is clear that the reality of the way it is written, small business would not be protected, in fact, it poses potential for a substantial amount of unmitigated risk that needs to be closely assessed with the input of public, private, and government organizations.”
The Torrance Area Chamber of Commerce represents the interests of business in the Torrance Area. For over 100 years, the Chamber has worked collaboratively in the community to promote a thriving economy and vibrant quality of life for Residents in the Torrance Area.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator height_2=”25″ height=”25″ show_border=”yes_border”][/vc_column][/vc_row][vc_row][vc_column width=”1/4″][vc_column_text]
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posted by
Brandon Matson
Brandon is the Governmental Affairs Coordinator for the Torrance Area Chamber of Commerce. His primary responsibilities include facilitating the Chamber’s Governmental Affairs Policy (GAP) group, planning Chamber events with legislators, and facilitating the Chamber’s Political Action Committee (PAC). Feel free to contact him at any time.[/vc_column_text][/vc_column][/vc_row]
