The growing grassroots revolt against property taxes is taking root in California with a new initiative to exempt homeowners ages 60 and older from paying property taxes on their primary residences.
ABC10.com reports the office of California’s Secretary of State cleared the measure to become a referendum in November’s election. Supporters of the proposal need to collect nearly 875,000 valid signatures by Aug. 4 for ballot inclusion.
The measure would abolish property taxes for eligible seniors who either resided in their homes for at least five years or lived in California for at least a decade.
“We see the movement happening across the country,” said Rishi Kumar, the initiative’s proponent. “There are 16 states that have already done something to address the angst of seniors.”
However, the proposal is facing pushback from county government officials who point out the withdrawal of property taxes paid by seniors could impact the services they provide. The nonpartisan Legislative Analyst’s Office claims the measure could reduce local revenues by $12 billion to $20 billion per year, with losses growing greater over time.
“It would eviscerate services in communities up and down the state,” said Graham Knaus, CEO of the California State Association of Counties. “Public safety, elections, parks, infrastructure — counties often have no other funding source for those services.”
But Kumar challenged that scenario, stating local governments could pursue “belt tightening” while highlighting that seniors would circulate their newfound savings back into their local economies.
“When you look at the money going back into the pockets of seniors, they’re going to spend it in the local community,” Kumar said.
Yes, Seniors worked and paid taxes all of their lives. Now, with only smaller incomes, the property tax relief would improve the quality of their lives. They are not able to earn more and yet costs rise faster than their, many times, meager incomes can handle.
this should happen all over in CT as well
The idea spunds inviting but we all should know by now the local, state and federal government will find other ways to tax and suck it out of you because they look for money spurces rather than fixing their budget issues.
Example: take social security. it is money you were already taxed on. Add insult to injury they began taxing taxing at 50% and 75% of the benefot amount. Taxed twice and they are still stealing. Then in 1984 the those same powers that be made a law they could borrow it BUT would pay it back with interest. NEWS FLASH!! THAT NEVER HAS HAPPENED. Instead they raid the coffers until there is nothing left. Same thing is happening with property taxes.
Social security inflow is not “borrowed”. Social security taxes collected currently are used to pay current social security benefits. It works if inflow matches outflow. The challenge occurs when inflow is insufficient to cover outflow. Demographics lately show that more retired seniors collect benefits now than contributing workers are paying in, which creates a shortage that the government must fulfill. Seniors are also living longer and collecting longer. That’s why legislators are considering raising the retirement thresholds to qualify for benefits. The shortage is increasing and they seek to bring it into balance. When they toss words out like “insolvent”, it just means they are having to supplement what was supposed to be self- funded.
Here in California I think what would work if needed is to base the property tax on those age 60+ to pay a flat fee that would not grow like it does every year. They would still have voted taxes to pay but there should be a level once you are at that age. A per year might be 2500.00 total so they can stay in their homes. For a cond or other would be much less and if a 4 unit occupied property it would be higher. That’s the way it would work. I like no property taxes but that isn’t sustainable.
While this sounds like a great idea, it could have disastrous unintended consequences. If seniors never have to worry about their property taxes increasing, then they have the ability to advocate and vote for ANY increased government spending with absolutely no consequences for themselves. Others, whose property taxes increase as government expands, foot the bill.
There should be no free rides for anyone. Property taxes should be eliminated (or at least significantly reduced) for EVERYONE. That is the only way to make sure all property owners are in the boat together and no special groups are created who can work to raise everyone else’s taxes with impunity.