Press Release(s)

Manufacturers Oppose Prop 15 Split Roll Property Tax Measure

Ask Governor to modernize State's budget and financing system for fairness

 Sept. 11, 2020 Sacramento, CA -- California Manufacturers & Technology Association President Lance Hastings made the following statement today regarding Gov. Newsom’s support of Proposition 15 — an initiative to change long standing Proposition 13 taxation rules and raise taxes on commercial and industrial properties: 

“California manufacturers are extremely disappointed that Gov. Newsom has endorsed the Split Roll initiative on this November’s ballot. Manufacturers depend on the stable and predictable costs provided by current law, and industrial property is put to highly productive use in California to the benefit of our economy with 1.3 million high wage manufacturing jobs. Manufacturers make long term investment decisions in 5, 10, 20 and 50 year windows. This policy has the potential to devastate the state’s manufacturing base in one generation’s time.

Taxing commercial and industrial properties differently from other smaller and residential properties contradicts the ‘we are in this together’ mantra and punishes some of our best employers. Manufacturers certainly wouldn’t support taxing residentials exclusively, nor should it be done to the industrial community. Where is the sense of fairness in massive unequal treatment of taxpayers of any and all varieties?

California’s 1930’s-era financing model can’t be fixed with expensive band-aids like Prop. 15. Manufacturers want to be part of a solution for a new modern financing system for California that works for our entire economy. We can’t continue to use our largest employers as cash machines with selective, targeted and unfair policies. Prop. 15’s revenue grab is unacceptable and, if passed, will drag our already-fragile economy that will take years to recover, if it recovers at all. Even today, in a global pandemic California-based manufacturers can barely compete to make products at scale here for our own workers and residents. These costs simply can’t be passed on to consumers, nor can they be absorbed in a competitive market. That mode of thinking is not productive or helpful.

The Governor is sending a contradictory message to manufacturers. On one hand, ‘we need you,’ and on the other, ‘please pay millions more just to stay here.’ CMTA and our members are urging voters to oppose Prop 15 and we are asking Gov. Newsom to begin the process of modernizing our State Budget and financing system so we are in fact all in this together.”






The California Manufacturers & Technology Association, has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. Total output from manufacturing in California is $288 billion per year, 10 percent of the total economic output of the state. Manufacturers employ 1.3 million California workers paying wages more than $25,000 higher than other non-farm employers in the state. twitter: @cmta  #MakingCA

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