DESPITE 25% DROP IN HOME VALUES STATE WIDE, MANY COUNTIES GET AN INCREASE IN PROPERTY TAX REVENUES! HOW? WHY?

Back in 1978 housing prices were going through the roof and property taxes were based upon the local assessor’s whim. Property taxes were rising 6% per year in this county, 10% in another, and so on. Homeowners were being taxed out of their home with these ever-increasing and unpredictable property taxes. The tax payers revolted and passed Prop 13 which placed a limit on increasing property taxes to 2% per year.

Fast forward to the biggest drop in property values since the great depression... One would think that property tax revenues would be down in proportion to the devaluation of property. Not so. Assessors are taking full advantage of the 2% increase provision of Prop 13 and sticking it to the California homeowner.

The provision of Prop 13 limiting the increase to 2% was not intended by the voters at the time to give the counties a wind-fall when housing prices are crashing. The intent was to temper the property tax increases during the boom cycles. Is it time for another property taxpayer-led revolt? Maybe. If not that, it is time to contact the California legislators and demand that they require the county assessors quit abusing the spirit of Prop 13 and stop the increases until the crash at least stops.

The voters approved Prop 13 in great numbers 30 years ago to create stability in property taxes - not give the counties extra revenue when the housing market is crashing. Looking at the budget mess in Sacramento, maybe it is pitchfork time again. It is time to storm the Bastille! See L.A.Times.