Tax Day

Property taxes are due on Monday. I mailed ours yesterday. It still hurts.

I was listening to someone of the radio last week talking about a push to repeal Proposition 13 tax structure for homes. It would allow the Californian legislature to increase property taxes to whatever levels they wished. Prop 13’s base is 1% of the value of the house – or the sale price – with only a maximum increase allowed of 1% of the tax bill per year. Even if the base was returned to only 1% of the current value, it would more than double our taxes.

Years ago, we planned to stay in our house because of the tax structure in California. Prior to Prop 13, older people who owned their houses with no mortgages were losing their homes because they could not afford the property taxes. We knew that one day we too would be retired and living on a fixed income so we stayed in this house, which we bought in 1982 and planned for our future.

Some people feel that Prop 13 is not fair. Neighbors are paying different rates depending on how much they paid for their homes. We pay about $3,300 per year while one neighbor pays about $10,000 per year.

Some people don’t realize how many new homes have been built since Prop 13 which has brought in more tax revenue than before Prop 13.

Some people don’t understand that the average turn around for homes in California is three years. The new owners pay the higher rate which again brings in more tax revenue.

If Prop 13 is repealed and our property taxes are doubled or tripled, we to would have to sell or we would lose our house like so many other retired or disabled people.

Prop 13 will allow us to stay in our house until the end.