EPIC advocates for reforming California's property tax system to combat poverty crisis

California's Board of Equalization meeting on April 29, 2025, highlighted pressing issues surrounding poverty and housing in the state, as advocates called for a reevaluation of revenue policies that disproportionately affect low-income families.

During the afternoon session, representatives from advocacy organization End Poverty in California (EPIC) emphasized the urgent need to address the state's high poverty rate, which remains the highest in the nation when adjusted for the cost of living. Despite California's status as the fourth largest economy globally, with a GDP exceeding $4 trillion, one-third of families struggle to meet basic expenses each month.

The discussion centered on the flawed narrative surrounding poverty, which often places blame on individuals rather than systemic issues. Advocates argued that the current revenue system, heavily reliant on personal income tax, creates a volatile budget that undermines anti-poverty efforts. This reliance leads to unpredictable funding for essential programs, leaving many families without the support they need.

The meeting also addressed the impact of California's property tax system, which has been criticized for favoring incumbent homeowners and exacerbating the housing crisis. The disparity in property tax breaks between racial groups was highlighted, with white homeowners receiving significantly more favorable treatment than their Black and Latino counterparts. This inequity contributes to rising housing costs and limits access for first-time homebuyers, pushing many into a permanent rental status.

With median home prices around $890,000 and rents averaging $2,800 statewide, the housing shortage is acute, with an estimated 3.5 million units needed to meet demand. The high impact fees for new construction, which are nearly three times the national average, further complicate the situation by discouraging new housing development.

As the meeting concluded, advocates called for a comprehensive review of revenue policies and a commitment to addressing the systemic issues that perpetuate poverty and hinder economic mobility in California. The discussions underscored the need for actionable solutions to create a more equitable and sustainable future for all Californians.