Wednesday, February 28, 2007

Won't they ever learn??

Ever wonder why California passed Prop 13 back in 1976/7?

A little back ground. California's legislature has been relatively liberal since at least 1970 and maybe earlier. They acted like the money earned by CA citizens belonged to the State and it was only by the goodness of the Legislature that the "people" were allowed to keep any of it.

In the mid 1970's California saw home prices increase at a fast rate (similar to the late 1980's and the last few years). Well property taxes were assessed on the market value of one's home regardless of when they purchased it. So someone who purchased their home for $15,000 in 1946 in Manhattan Beach would have to pay real estate tax on the market rate of their house in 1975 (say $50,000.00). Now this person is retired and on a fixed income and can't afford to pay the tax, although they did pay off the mortgage) and were forced to move. At the time, California had a large ($8 billion) surplus in tax revenue, while property taxes were increasing and forcing people out of their homes.

The people finally said enough is enough and since the Legislature can't or won't fix the problem, we will do it for them and prop 13 was passed by the citizens. The Legislature and Counties and Cities were horrified, their ability to raise property taxes were limited and therefore spending was limited. All sorts of disasters were predicted but we survived. Now prop 13 is not perfect and parts should be changed, but the citizens of CA are unlikely to allow any changes because the government has not been able to show itself trust worthy to fix the problems without trying to get rid of the protections needed.

All of that is to say, in Florida, where they don't have protection like prop 13, the local county administrators are upset that the county Budget Advisory Committee even suggested holding the line on spending for one year.

From 2005 to 2006, property taxes increased by 16%. Think about that for a moment. You live in your house and pay $5,000 in property taxes in 2005 (many other states pay higher property taxes then Cal) and the next year you see the tax bill increase to $5,800. If your on fixed income, the extra $800 may not be affordable. And remember that is for one year only.

If the county commissioners are not careful, they may find the citizens (remember those, the people you work for, Commissioners) doing a Prop 13. Yes its a blunt instrument when a knife might be better, but when the politicians don't listen, then we the people have to use the tools we have to get their attention and tell them in detail what to do because the politicians have proven again they have forgotten they work for us, not we work for them.

Hat tip Lucianne.com

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