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Commercial Tax Lawsuit

Wednesday, August 15, 2018   (0 Comments)
Posted by: Julia Freeland
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In conjunction with the Howard Jarvis Taxpayers Association (HJTA), BOMA California, CBPA, and the California Business Roundtable have filed suit in the Superior Court in San Francisco challenging the city's special tax on commercial property (Proposition C – passed in June 2018), which is an illegal and punitive gross receipts levy which will reduce commercial property values in the city by up to 12%.

Our lawsuit asserts that because the tax is expressly for a special purpose, it required a 2/3 vote of the city's electorate under Propositions 13 and 218. But it did not pass by that margin. Rather, the tax proposal, designated as Measure C, received a scant 50.87% vote.

The basis for the lawsuit is that the California Constitution clearly holds that special taxes at the local level have required a two-thirds vote of the electorate as mandated by Propositions 13 and 218.