<<Proposition 218 had as its genesis the grandfather of modern California property taxation, Proposition 13. A frequently-overlooked section of Proposition 13 prohibited local governments from enacting any special tax without a two-thirds vote of the electorate. Local government agencies methodically chipped away at the initiative, utilizing artificial court-created distinctions between "special" and "general" taxes, and between "taxes" and "fees." While Proposition 13 has limited annual increases in ad valorem taxes to two percent, by 1996, the number of local special districts imposing fees and assessments without the consent of the affected voters increased to over 5,000; and exactions imposed by those districts soared by over 2400%. In some cities, in fact, the amount of "special" taxes imposed annually on property owners almost equaled the amount of their "regular" assessments.
Mr. Buffett may be technically or semantically correct in that he pays only$2400.00 in property taxeson his $4 million home, but I think he is disingenuous in not revealing the true cost of property ownership due to the above related factors. I am sure a person with his financial acumen is aware of these factors.. Prop. 13, the law in question, allows for a 2% increase per year, it is therfore unlikely he is paying the same tax he paid when he constructed the house. I would be curious to know the assed valuation of Mr. Buffet's now $4 million home at the time of construction, and then compute 30 years of compounded increase in taxes at the 2% rate??? I would also be curious to know the millage rate in his area on new construction. Since Mr. Buffett believes so strongly in taxation he should offer to pay the local taxing authority the going rate on his home. Only fair. Based on the $14,000 , or approximately 60 mils rate, he pays on his NE home, the tax in CA would be would be only $120,000 or so, a mere pittance for Mr. Buffett, and he would "feel so much better".
Ken |
