Prop 15 changes the tax assessment of commercial and industrial property to increase funding for public schools, community colleges and local government services.
According to the state, it would increase property taxes on commercial properties worth more than $3 million, and it could provide between $6.5 billion to $11.5 billion in funding to governments and schools.
Those in favor of the proposition argue that California gives away billions of dollars in property taxes to wealthy corporations, but this would allow some of that money to be used to deal with inequality, poverty, unemployment, unaffordable housing, homelessness and underfunded schools.
They say it will close corporate loopholes by requiring nonresidential commercial properties to be assessed based on their fair market value, but it will not impact homeowners or renters. Instead, they say it will cut taxes for small businesses by exempting those with properties worth less than $3 million and cutting business personal property taxes on equipment, computers and fixtures.
Those who oppose the proposition call it the largest annual property tax increase in California history.
They say the proposition repeals taxpayer protections laid out in Prop 13. They say Prop 13 keeps property taxes affordable by capping property taxes and limiting increases annually. They expect that the tax increase proposed in Proposition 15 would raise the cost of living because it will lead to increase costs.
Opponents believe the proposition will raise taxes for family farms and lead to higher costs for food. They also argue that it lacks accountability, saying politicians can spend the revenue on anything they want, including administrative costs, consultants and pay raises.