Calif. gov candidate Tom Steyer privately told union leaders he’ll support a special election for higher corporate taxes: report

Gubernational candidate Tom Steyer is eyeing a 2027 special election to modify California’s landmark Proposition 13 by reassessing commercial properties at market value — reopening one of the state’s most politically volatile tax debates.

Steyer, who has made common cause with campaign aides linked to far-left New York City Mayor Zohran Mamdani, confirmed in an interview with Politico that he has been telling union leaders he would support a special election in 2027 to hike corporate taxes.

“The big Republican bill is really going to hit the California budget, and that is going to blow a hole in it,” Steyer told Politico, an allusion to health care cuts that were part of President Trump’s signature tax overhaul that was signed into law last year.

“We really can’t wait. We’re on the clock. And so, yes, the only way to pass that is with a special election.”

Proposition 13, which was approved by voters in 1978 amid backlash over soaring property tax bills, amended the state constitution to cap the base property tax rate at 1% of a property’s assessed value and limit annual increases in that assessed value to 2% unless the property changes hands.

The measure was designed to protect homeowners — particularly retirees on fixed incomes — from being taxed out of their homes as real estate prices surged.

Prop 13 has since become a cornerstone of California’s tax system.

A “split-roll” system, long favored by labor unions and progressive activists, would carve commercial and industrial properties out of those protections by reassessing them regularly at current market value while keeping Prop 13’s limits in place for residential properties.

Supporters argue the change would generate billions in new revenue for schools and local governments, while opponents contend it would raise costs for businesses and ultimately ripple through the broader economy.

Enlisting union support is crucial for Steyer and his Democrat rivals in the race.

The latest Emerson College/Inside California Politics poll shows Steyer lagging both the Democratic frontrunners and the broader field.

Among likely voters in the June 2 top-two primary, Republican Steve Hilton leads with 17%, followed by Rep. Eric Swalwell at 14% and Riverside County Sheriff Chad Bianco at 14%, with former Rep. Katie Porter at 10% and Steyer at 9%.

Among Democrats specifically, Steyer draws 12%, trailing Swalwell at 23% and Porter at 14%, underscoring that he remains behind the party’s leading contenders as well as the overall field.

A corporate tax hike in California was panned by experts who spoke to the California Post. They said raising taxes on companies will simply spur more of them to relocate outside of the state.

“This isn’t tax reform, it’s economic self-sabotage — when you punish the people who create jobs, you don’t soak the rich, you soak the workers through layoffs, higher prices, and empty storefronts,” Ted Jenkin, managing partner at Exit Wealth Advisors, told the California Post.

“A split-roll tax isn’t a revenue plan, it’s a relocation incentive.”

The California Post has sought comment from Steyer.