How Will SB 1021 Affect California Prop 13 Property Taxes?

    What is Proposition 13Prop 13 has been law since 1978 and has kept our property taxes moderately low for the last 36 years. This is because it places limits on how assessments can increase year-over-year.

    Most people think that California has some of the highest taxes in the country, and we do. But when it comes to our property taxes, we are actually right in the middle when it comes to property taxation. That has served homeowners here well for years, but that could be changing soon.

    SB 1021  prop 13, changes to proposition 13

    Thanks to State Senator Lois Wolk, a Democrat from Davis, property taxes here could be changing. She recently introduced SB 1021, which will enable school districts to impose higher parcel taxes, but the only catch is that due to some legal “maneuvering”, this State Bill will only need to get the majority approval of our legislature and not two thirds approval from voters like all other taxation bills typically do.

    How Will SB 1021 Work?

    If it’s passed, SB 1021 parcel tax rates would vary by the size of property and category, compared to being standardized like it is now. This would ultimately give school officials (bureaucrats) the ability to determine what parcel tax rate tax payers will pay on a case by case basis.

    A Recipe for Chaos?

    It’s been said that SB 1021 would ultimately be a recipe for chaos because it would give Bureaucrats the ability to use discriminatory or special treatment when factoring in parcel tax rates and this is certainly a concern. Without continuing to have a standardized parcel tax rate across the board most tax payers could find that their parcel tax rates vary per each tax payer.

    Where Does The Tax Money Really Go?

    SB 1021 might be a good idea if the tax money really would go to Public Schools in California but with the states poor record at distributing higher sales and income taxes to our schools it’s unlikely that revenue from SB 1021 would end up anywhere else other than in the School Unions hands and California’s schools will still continue to need money in the coming years in spite of higher taxes.

    What is your opinion on SB 1021? Feel free to leave us a comment!

    To learn more about the Orange County Real Estate market, or to view homes for sale here, contact Fred Sed & Associates today by calling us at (949) 272-0125.

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