THE VIEW FROM HERE-Recently, I contacted all of our City Councilmembers, asking them individually or in combination with other Councilmembers, to introduce a bill to support the concept of split roll taxation.
Many of us have not been aware of the unintended consequences of Proposition 13, passed more than 30 years ago. I must admit that at the time (not having gotten as politically involved and knowledgeable as I am now), my husband and I were convinced that supporting that piece of legislation would be a good thing. Had that bill not passed, I am sure that we would not have been able to stay in our Granada Hills home. Dramatic property tax increases due to the soaring home values that quickly followed our home purchase would likely have been unaffordable to a young, newly married couple.
We did not understand then that commercial buildings would be taxed in the same way as residential property (based on 1975 values). It is a fact that two-thirds of California voters in 1978 supported this measure through the initiative process. Since then, however, homeowners have been paying a disproportionate percentage of all property taxes collected in California, let alone in Los Angeles.
As it is, homeowners pay about 8 times more in property taxes than commercial property owners. The key, of course, is that within the law there is a tax loophole of which the corporate world takes advantage. Unless there are building modifications (that have received permits) that require a tax increase based upon the depth of those changes, no property in California is reassessed until the property is sold.
It is rare that commercial properties change hands (as it stands, such owners can do an end-run around the law by utilizing legal methods to allow “ownership” to change hands without the requisite increases—and they do that in great numbers). Thus, most such properties are still being taxed at 1970s levels.
This is 2014 and there is no question (despite recent dips in property values) that those commercial values have increased dramatically since the 1970s and, therefore, ought to be taxed at current values. The result of such legislation would produce billions of dollars for the State of California to utilize in areas that have received recent cuts--such as education, health care, road repairs, water quality, and so forth.
Because Proposition 13 became part of the California Constitution (Article13a), it takes a two-thirds vote of the State legislators in both houses to modify this Howard Jarvis-backed law (followed by a subsequent 2/3 approval of the State’s voters). Despite the “tax revolt” anger that induced so many Californians to support Proposition 13 in 1978, it is time to take a second look at all the facets of the law that emerged from that “tax revolution.”
Currently, there are a number of State bills (9) that are being considered to institute the kind of changes I have suggested. Thus, I reiterate the importance that our City Council introduce a motion to support the split roll whose consequences would allow residents (who purchased their homes on or before the law’s passage) to continue being taxed at the 1970s rate but would tax commercial properties at their current value (including being reassessed on a regular basis to reflect the ever-changing values of those companies).
I ask all of you to do as I have done. Contact your City Councilmember (or all of them). It is easy to obtain their contact information: go to LACity.org … click on City Government … click on Elected Official Offices … Click on City Council … Click on Council Directory
(lacity.org-->City Government-->Elected Official Offices—>City Council-->Council Directory).
Just think of the revenues that can be produced from such a modification. We can re-open schools, libraries, homeless shelters, health centers, trauma centers—many of which have already suffered from draconian budgetary cuts. There could be a reduction in overcrowding of prisons. There would be monies for road repairs, bicycle and pedestrian lanes, for filling potholes and repairing sidewalks—the list is almost endless.
Much of this is up to our involvement and vigilance. Each of us is a citizen representative that can make a difference. We elected these Councilmembers to represent us. Let us make them aware of what we want them to do on our behalf. I believe it is imperative that we act right now. Consider the impact if each of us contacted these lawmakers to support the split roll.
I am waiting to hear from our Councilmembers. I hope they are inundated with your messages as well. Hopefully, they will be convinced that such a measure is not only advisable but necessary. I can just imagine which members will respond thoughtfully to our request. I hope that means a majority will take the lead in supporting this piece of legislation.
Just sayin’ …
(Rosemary Jenkins is a Democratic activist and chair of the Northeast Valley Green Coalition. Jenkins has written Leticia in Her Wedding Dress and Other Poems, A Quick-and-Easy Reference to Correct Grammar and Composition and Vignettes for Understanding Literary and Related Concepts. She also writes for CityWatch.) Graphic credits: Chronicle illustration by Brooks Mencher
-cw
CityWatch
Vol 12 Issue 27
Pub: Apr 1, 2014
