It’s Prop 13’s Fault—Property Taxes are UP in L.A.

Everything in California is Proposition 13’s fault – how many times have we heard it? But here’s one time it’s true. Property taxes went UP in Los Angeles County last year … and its Proposition 13’s fault! That’s what the Los Angeles County Assessor Rick Auerbach says in releasing property assessments for the county. In fact, the property tax increase exceeded expectations. While 5% was predicted, property taxes actually climbed 6.9% this year. Here’s a short piece about it in today’s Los Angeles Times.

4th of July in 2008

Ramblings of a 4th of July. It was a beautiful day – sun shining, gentle breeze, clear blue skies, surrounded by family and friends, some I had known for 50 years and some for a few weeks. Lots of food and drink, kids running, swimming, yelling, chasing, and there I was trying to take it all in. Smiling, hugging, shaking hands, laughing, chatting it up –- about the kids, about the weather, about politics… Always back to politics.

Although many of us really do care about what is going on in the world our country and in our state, the sad fact is that not enough pay close attention –- and for politicians that is probably a good thing, because who knows where they would fall on the issues. Does their vote even matter anymore, anyway?

Sales Tax on Digital Downloads Still a Terrible Idea

Charles Calderon (D-City of Industry) got a lot of attention after introducing a bill that proposed digital content be subject to the sales and use tax. The label, “I-Tunes tax,” stuck, and the bill (AB 1956) was defeated in the Assembly Revenue and Taxation Committee, whose Chairman is the same Charles Calderon. What has not gotten as much attention is that Calderon has used the special session to re-introduce the same bill as a special session bill, so we need to rehash what is so brazen and wrong about the proposal, ABX3 22.

Under the State Constitution a bill to create a new tax or increase an existing tax is the prerogative of the Legislature. Calderon’s bill would bypass this restriction by mandating the Board of Equalization draft a regulation declaring that digital content is tangible personal property subject to tax. I believe Calderon’s argument is that in this bill the Legislature is not enacting a tax increase, but is ordering the BOE to take actions that will result in a tax increase. This transparent gimmick to avoid the Constitutional impediment to higher taxes caused my colleague on the Board, Betty Yee (D-San Francisco), to say at a public meeting that she is offended by Calderon’s proposal. It is a cynical hijacking of our process which exists for the benefit of the public, not legislators who cannot win in the Legislature.