I know reporters are having a hard
time understanding this, and that’s why the legislative leadership is
doing it. If they were to file a bill called "Bill to increase
property taxes by 1.87% on average, making Proposition 2½, Proposition
4.37" everyone would know what it is.
If they said "we are going to
raise property taxes by $160 million dollars," everyone would see
the simple tax increase.
Since the beginning of Prop 2½ in
1980, there have been no exemptions. All tax revenues, whether spent on
education, public safety, public works, debt, libraries, or abatements,
are limited by the Prop 2½ levy limit. The levy can go up only 2.5 % a
year, plus a provision for new growth and overrides.
If this passes, the levy will go up
2.5 % a year, plus on average another 1.87 %, before calculating new
growth and overrides.
If you are overcharged at Acme
Department Store, then complain, the store will give you back the extra
money you should not have given them. The store will not routinely
overcharge all its customers to keep some money in a fund in case they
overcharge you; but it has to find the money somewhere. Presumably there
is cash kept somewhere so they can reimburse you immediately.
If a city or town overcharges a
property taxpayer, it is required to keep enough money to return the
overcharge to the taxpayer. It shouldn’t be able to INCREASE that
taxpayer’s taxes, and the taxes of all other taxpayers, in order to
return the money it shouldn’t have taken from him in the first place!
Other points to consider:
If the customer doesn’t notice the
overcharge, then the store gets to keep the overcharge, and spend the
money on whatever it wants. If the community has an abatement history
and must keep money in the overlay account, and taxpayers do not apply
for an abatement, the money goes into the community’s fund to be spent
on whatever it wants. If this passes, it will behoove the community to
over-assess often, build up the abatement history, expand the slush
fund.
Keep this memo: I guarantee this will
happen and I’ll be able to say I told you so.
Barbara Anderson