(April 9, 2004) In a huge victory for California jobs, proponents of the California Chamber-opposed multibillion-dollar split roll property tax measure announced yesterday that they have decided not to submit signatures to place the costly measure on the November ballot.  Chamber President Allan Zaremberg served as co-chair of Californians Against Higher Property Taxes, the campaign opposing this measure.

'This multibillion dollar property tax increased loomed over employers as they considered whether to keep jobs - or expand operations - in California.  Now employers can plan with certainty their property tax bills over the coming years and make key decisions about job location without worrying about this costly measure,' said Jeanne Cain, Chamber senior Vice President. 

The measure, sponsored by the California Teachers Association and Rob Reiner, would have imposed a 55% property tax increase on commercial property,  would have directly increased costs on employers throughout the state - whether they own their property or lease their space. This measure would have only caused harm to those businesses that have struggled to survive and keep their doors open as the cost of doing business in California has continued to climb. 

'The proponents saw the writing on the wall:  voters sent a clear message in March with the defeat of Proposition 56 that they are strongly opposed to huge tax increases,' continued Cain.

Historically, the California Chamber of Commerce has supported responsible measures to help improve California's education system, such as Proposition 55, the kindergarten-university bond measure on the March ballot.  However, this measure would have imposed a multibillion dollar burden on employers just as our economy may be coming out of a recession.

'With this measure no longer hanging over employers, we can now concentrate on other measures impacting California business on the November ballot, including our opposition to Senate Bill 2 and our support for reforms to California Business & Professions Code 17200,' continued Cain.  'Further, we will continue to work with the Governor and the legislature to identify and implement programs that will reinvigorate California's economy and bring jobs back to our state.'

Staff Contact: Sara Lee