Tom Steyer Advocates for Special Election to Modify Proposition 13

California gubernatorial candidate Tom Steyer is advocating for a special election in 2027 aimed at modifying Proposition 13, a significant tax measure established in 1978. This initiative seeks to reassess commercial properties at market value, a concept known as "split-roll." Steyer's proposal is designed to generate additional revenue for schools and local governments by removing the protections that currently limit tax increases on commercial properties while maintaining the existing limits for residential properties.

New York Post

Steyer has engaged with union leaders, indicating that he would support a special election to raise corporate taxes, which he believes is necessary due to the financial implications of recent federal tax reforms. He stated, “The big Republican bill is really going to hit the California budget, and that is going to blow a hole in it,” referencing the potential budgetary impacts of health care cuts associated with President Donald Trump’s tax overhaul.

Politico

Steyer's push for a special election comes amid a crowded Democratic primary field, where he currently polls below 10%. He trails behind frontrunners such as Rep. Eric Swalwell and former Rep. Katie Porter. The latest Emerson College/Inside California Politics poll shows Swalwell leading with 23% among Democrats, while Steyer garners only 12%. In the broader field, Republican Steve Hilton leads with 17%, followed closely by Swalwell and Riverside County Sheriff Chad Bianco at 14%.

New York Post

Steyer's campaign strategy includes securing endorsements from major labor unions, which have historically supported the split-roll tax initiative. However, his rivals have criticized him for potentially using these commitments to gain political leverage.

Politico

The proposal to modify Proposition 13 has drawn mixed reactions. Supporters argue that a split-roll system could provide essential funding for public services, while critics warn that increasing taxes on businesses may lead to economic repercussions, including potential relocations out of California. Ted Jenkin, managing partner at Exit Wealth Advisors, criticized the proposal, stating, “This isn’t tax reform, it’s economic self-sabotage,” suggesting that higher taxes could lead to layoffs and increased costs for consumers.

New York Post

In response to questions about financing ballot initiatives, Steyer emphasized that his focus is on California's needs rather than personal financial contributions. He stated, “This is not about me. This is about meeting California’s needs,” indicating a collaborative approach to governance.

Politico

Steyer is expected to hold a press conference in San Francisco to further outline his plans and garner support for the proposed special election. As the 2027 election approaches, the debate over Proposition 13 and corporate taxes will likely intensify, shaping the political landscape in California.

New York Post