In early June 2018, San Francisco held an election for nine propositions.
One, in particular, kept many on their toes because it mixed both personal lives with business. Proposition C, the Commercial Rent Tax for Childcare and Early Education passed and will increase the tax those receiving income from commercial spaces (3.785% to 3.8% for most commercial spaces). An estimated $146 million would be generated according to the city controller.
However, The Howard Jarvis Taxpayers Association (HJTA) is not easily accepting the approval for changes. On their own behalf, the HJTA filed suit in San Francisco claiming since the tax is purposed towards specific groups, the tax is “an illegal, punitive gross receipts levy which has been estimated to reduce commercial property values in the city by 11-12%.” Though they have filed on their own behalf they are in coalition with commercial property owners who will be grossly affected by the tax (BOMA California, California Business Properties Association, and the California Business Roundtable).
Proposition C passed only by a slim 50.87% vote.
Although there is an absolute shortage of child care funding, those opposed to Prop C claim that a significant tax increase on one industry will create a very negative effect on San Francisco’s economy overall.