California homeowners will be getting a badly-needed break in the form of tax relief due to the deflated housing market this year. For the first time since Proposition 13 passed in 1978, homeowners are likely to see a lower property tax bill. The State Board of Equalization announced recently that due to deflation in the value of real estate statewide, they will be reducing the rates this year, by about $2.60 per every $100,000 in assessed property value.
That may seem insignificant, but any decrease in taxes should come as welcome news to homeowners in California who have been saddled with some of the highest taxes in the nation. For all but 5 years since the passage of Prop. 13, the property taxes have increased at their limit of 2 percent per year. To actually have a tax bill decrease is something to celebrate.
After all, California has the 4th highest state income tax in the nation, the highest state sales tax in the nation, one of the highest corporate income tax rates in the nation, and the highest gas taxes of any state.
This is a good time to reflect on the benefits of Proposition 13, which often comes under attack when state revenues fall short.
As Jon Coupal pointed out in his article to Sacramento Bee on Oct. 4, 2009, Prop. 13 has not only saved hundreds of thousands of homeowners from losing their homes when the values of real estate have skyrocketed over the past 30 years, but has also secured a dependable source of revenues for the state when the values have sharply decreased. Not to mention that without the provisions in Prop. 13, which requires two-thirds of the Legislature to vote for tax increases, the state would undoubtedly be in worse shape than it is today.
Without Prop. 13, many people would not be able to afford to stay in their homes, as the values have increased dramatically since they first purchased them. Senior citizens who worked their whole lives to buy a home, and are living on a fixed income, may not be able to pay the property taxes on a home that they purchased for $20,000, and which is now worth $500,000 or more.
Prop. 13 has been an enormous benefit to the state, and despite claims by critics who would like to see it overturned, it has actually been a stabilizing force, bringing in a steady stream of revenues, while keeping tax-and-spend Democrats at bay.
December 2nd, 2009 at 12:00 am
Yeah, because it’s fair for someone owning a home for 30 years and making lots of income to be paying a lot less in property taxes than their middle class neighbors who are struggling. Love your sense of tax fairness.
December 3rd, 2009 at 12:00 am
Yes, in Mr. Maviglio’s world, tax fairness means the person owning the home for 30 years is paying just as much as their middle class neighbors, and everyone’s struggling. Not only with high property taxes, but with the 4th highest state income tax, the highest state sales tax, the highest gas tax, one of the highest corporate tax rates, and oppressive business regulation. And, even so, expenditures would still exceed tax revenues, and he would be demanding more.
December 3rd, 2009 at 12:00 am
How many of our elected Reps have their houses in 1978 trusts? I have to keep paying more and more in taxes and others either 1) don’t pay or 2) have props undervalued or 3) have them in trusts. And how much money is made by elected officials to “scare” people with Prop 13?
December 3rd, 2009 at 12:00 am
Steve, would you throw my mother out of her house because she couldn’t pay market value taxes? My parents bought the house in 1974 for about $44,000, it is now worth about $800,000. My mother is now a widow living on a limited income if she had to pay the going rate on property taxes she would be thrown out of her home of 35 years. That is the kind of fairness you want? You buy a house knowing the property taxes that will be assessed and you don’t have to worry about extreme tax increases because the government can’t stop spending!
December 3rd, 2009 at 12:00 am
Glad to see a discourse has come to Flash Report. Bring on more libs, RINOS, “moderates”.
Taxes destroy FREEDOM….if taxes were so great why is California facing a 131 billion debt, and this figure does not include local government debts like in silly San Diego…..now I know why their sleezy hotel room rates are so high…
If anything, Prop 13 should be CUT for property owners….reward stability in an out of control State.
It is time to take on the moochers, the welfare enablers, the career pillager politicans in both parties…
There is a initiative drive to limit the legislature to 90 days instead of the approx. 140 days….cutting PER DIEM, perks, and the like. These creeps have ruined California. We cannot even get a good candidate in either party to run for Governor…just look at the likes of Whitman and Campbell…no Profiles in Courage just more of the “deer in the headlights” drama.
December 3rd, 2009 at 12:00 am
So, Sean, let me get this straight: she has an asset of $800,000, and instead of a reverse equity mortgage to help pay market rate taxes, the rest of us should be subsidizing her (and so she can pass that asset to you?).
Gee, here I thought you guys believed in the open and fair market.
December 3rd, 2009 at 12:00 am
Mr. Bosich, reducing pay and the time in Sacramento will mean: lobbyists will have more power (since they’ll be the only ones who know what’s going on), the governor will have more power (somehow I dont see you liking Jerry Brown with king-like powers), and the public will be shut out of the discussion because there will be 60 days to review 1,000+ bills (the NH legislature, part-time, has more bills than any other legislature).
Wrong solution to the problem you cite.
December 3rd, 2009 at 12:00 am
It’s almost too funny. Steve Maviglio’s idea of tax fairness is that old people should have to mortgage their homes to pay the taxes on them.
Let your friends, neighbors, and everyone else you can know.
December 3rd, 2009 at 12:00 am
Steven….you better get caught up quick…..a voter revolution is brewing…the days of useless 1000 bills is over….the days of lobbyists will wane as the money in the swamp dries up….
Get real….do you think we can continue spending and spending and catering to the purple shirts and teacher unions and not go under at the state level….
The legislature sucks….teachers suck and unions suck…..end of story!
We are going on offense.
December 4th, 2009 at 12:00 am
Steve, so what you are saying is that after a lifetime of financially responsible behavior, living below her means, raising three responsible and productive children that the State of California deserves the fruits of her labors and she should be forced to go into debt in order to pay higher taxes? Please use your influence to add that as a plank in the Democrats’ platform.
December 4th, 2009 at 12:00 am
No, what I’m saying is that we need a system of tax fairness — where Californians are taxed on their ability to pay. Under that system, your mother would do well and she wouldn’t have to worry about losing her home. Of course, I’m sure you don’t support that, because that would mean the wealthiest Californians would have to pay their fair share instead of regressive taxes like the sales tax, etc.
And Robert — you better amend the part-time legislature/pay cut initiative again. It does nothing to reduce the number of bills (in fact, NH, with its part-time legislature, has the most # of bills introduced each year in the nation). It doesn’t take a rocket scientist to figure out that amateur legislators with 30 days experience will be no match for lobbyists or even staff.