Will increase property taxes cost California 396,345 jobs? According to a recent study by Californians Against Higher Property Taxes’ Stephen Frates and Michael Shires at Pepperdine University's Davenport Institute, the answer is yes.

The study showed that by increasing property taxes on businesses by $6 billion, it would result in $71.8 billion in reduced economic output and 396,345 fewer jobs over the first five years of the tax increase. And those impacts would grow over time, they say.

“With unemployment numbers leading the nation, and small businesses trying to recover, there could not be a worse time to force California businesses to pay higher property taxes. Higher taxes means businesses charging higher prices for their consumers, laying off their employees or even worse, closing their doors completely,” says John Kabateck, executive director of the National Federation of Independent Business—California.

The study further concluded that not only will it hurt small businesses, but that these kinds of tax increases would disproportionately harm small businesses owned by women and minorities because these businesses usually rent their space and property taxes are paid by the lessee as part of the lease.

Shouldn’t California should be engaging in tax policies that help small businesses thrive and create jobs, not kill them?

The study echoes recent opinions from RealShare Real Estate 2012 panelists at a speaker dinner before the event, where nearly 40 industry executives expressed concern about California essentially worsening the economy and doing absolutely nothing to better the situation, noting that increased property taxes is bad any way you look at it. It’s bad for jobs, local government budgeting and bad for small businesses, said panelists. 

I recently spoke with Transwestern’s executive managing director, Jonathan Larsen about this very topic of California businesses, whether small or large—and he said that California has had a wave of exodus to states such as Tennessee, Texas, Arizona and D.C. areas. The top reasons for that, he says, are tax benefits, affordable and quality housing, and an available labor pool at competitive compensation.

But still, it’s California…and whether it has high property taxes or not, companies (and residents I might add) love it here.

Take Irvine, CA-based Edwards Lifesciences for example. The firm’s Tom Porter, VP of real estate, recently told me that despite the issues, California is a great place to work, has quality schools, and his company is able to attract and retain the talent required to run its business.

So, what do you think about increased property taxes here and how does it affect you and your company?

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.