There are three main problems. Measure U1 exempts new luxury apartment complexes, a big gift to big developers. Measure U1 fails to provide any assurance that new revenue will be used as intended. And, Measure U1 raises the tax rate by so much—a 166 percent jump, from 1.081 percent to 2.88 percent to of gross receipts—that it is virtually certain to hurt tenants by being passed along in rent hikes, or reduced spending on tenant improvements, or both.
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