No Tax Cuts for the Rich: Feb 3rd Speakout

No Tax Cuts for the Rich While Poor Die on the Streets!

What: Picket and speak-out against B of A's requested tax cut
When: Tuesday, February 3, 12:00 noon
Where: San Francisco City Hall, Polk Street Steps
Contact: Michael Lyon, 415-215-7575

In yet another example of shameless greed, the Shorenstein Company, the biggest and most powerful owner of commercial real estate in San Francisco is demanding a $2.4 million reduction in year 2002 property taxes on their Bank of America Tower at 555 California Street. It will be heard at the SF Assessment Appeals Board on February 3. Shorenstein has filed for a $4.26 million reduction in year 2003 taxes on the BoA Tower.

Meanwhile, San Francisco is planning devastating cuts to City Health, Human Services, Education, and other vital services because of budget shortfalls brought on by implosion of the dot-com bubble, tax cuts to the rich, and billions of war/occupation-related expenses. In this context, Shorenstein's money grab is especially intolerable.

The People's Budget is calling for a picket/speak out and for people
to pack the Assessment Appeals Hearing to protest this shameless outrage.

The BoA tower was bought in 1985, and although its market value rose tremendously during the late 1990s hyper-boom, Proposition 13 limited the increase in assessment to below 2% per year, depriving the City of millions in property tax revenue each year. Property consultants say SF commercial real estate prices increased 60 per cent between 1997 and 1999.

Currently, some 1,500 San Francisco property owners are demanding a total of $116 million dollars in property tax reductions through the City's Assessment Appeals Board, including the owners of the Bank of America building, the Transamerica Pyramid, Embarcadero Center, Stonestown Galleria, the Marriott hotel and other well-known skyscrapers, shopping centers, hotels and even a power plant. (SF Chronicle, 4-24-03)

According to a San Francisco Bay Guardian survey (SFBG 10-6-99) of 10 major downtown commercial properties (major hotels, Bechtel headquarters, major office buildings), reduced assessments cost the city between $9.5 million and $23.6 million in potential property taxes from 1993 to 1998. In this period, Shorenstein demanded, and got, a reduction every year, saving the company almost twelve million dollars, according to the City Assessor office.

City Assessor Mabel Tang, in commenting on the requested reduction in the BofA property tax value, said "If that's really what the building is worth, then we'd like to buy it from them."

Only two years ago, the biggest corporations sued San Francisco for over $100 million in business taxes they said were "unfair." Rather than fight, the City agreed to $80 million and forfeit $25 million per year in future taxes. Not satisfied with this agreement, Macy's is suing separately for $10 million.

The time has come for corporate San Francisco to cough up it's
long-overdue share for services for people of San Franciscans who make their companies run and buy their products and services.