Steven Ring, the president of the Building Owners and Managers Association of San Francisco, and Ken Cleaveland, its vice president of public policy, have penned an excellent article about the impacts of a split roll property tax. From the article:

“Let’s do some simple economics. When you increase any company’s taxes, it must reduce its spending on employees, goods, services, and research and development. This reduction impacts the entire community a little bit. If thousands of companies (commercial tenants) must absorb these hidden tax hikes, then their spending reductions impact the community on a massive scale.

The government will enjoy the new property tax revenue for only a short while before the greater tax impact is felt by the entire community. Less business spending translates into declining revenue from other taxes, such as income, sales and user fees. These are the revenues all governments need for vital services such as mass transit, police, fire, education, infrastructure maintenance and repair, sanitation, etc.”

Click here to read the full op/ed.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)