Arthur Blaustein: California’s Folly — Prop. 13 - Truthdig
I thought then, and am firmly convinced now, that the key elements in the proposition—the taxation formula and the two-thirds legislative requirement—would be responsible for causing a fiscal and social disaster. These two requirements have in time helped to lead the state into financial bankruptcy and created a dysfunctional state government. And the social consequences that I predicted then and which are all too apparent now are a race to the bottom in education (from K through our highly esteemed university system); public health; social services; public safety; arts, libraries and culture; and infrastructure development; as well as crippling the ability of local governments to provide basic amenities.
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I agree with Blaustein. Add to this the fact that common interest housing has proliferated in California and elsewhere as local governments struggled to find the revenues they lost with property tax caps. Double taxation: breakfast of champions.
2 comments:
The taxation is more than double.
Local government foists off its responsibilities by creating yet another taxing jurisdiction and pushing off services which become the responsibility of that new taxing jurisdiction. There is no reduction in the tax rate but rather an increase in the overall tax rate to the homeowner. The cycle repeats and the homeowner is inevitably left with being taxed to death and no entity providing the service.
Most HOA corporations have no obligation to provide services. Some would say that the HOA's assessment authority is really an unconstitutional taxing authority. No state has delegated or expanded taxing authority to a private corporation.
Common interest?
What's the "common interest"?
"Common interest" is an industry-coined term designed to put a spin on what you "own" - which is a "common liability" the amount of which is under someone else's control.
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