Property Tax

Longtime Proposition 13 basher George Skelton is at it again ("Fight to Fill Revenue Hole From Prop. 13 Continues After 26 Years," Capitol Journal, July 12). Skelton claims the feud between state and local officials over property tax proceeds is a legacy of Prop. 13. But this is like saying two dogs fight over a bone because the cat made them do it. Both local and state governments want more, and if they had more they would still want more. We know this because they already have more -- California governments at all levels, even after allowing for inflation and population growth, have more money than they did before the passage of Prop.

There is a bit to cheer in the proposed budget that the City Council could take up as early as Friday. An uptick in property tax revenue provided a badly needed bit of room to maneuver. Cutbacks in services that might have led to the elimination of 600 jobs now may end up claiming about two-thirds as many. A modest increase to the city's reserve fund may also be possible. Those are the results of a thoughtful and meticulous process engaged in by the council's new Budget and Finance chair, Councilman Paul Krekorian.

The Ventura County supervisors will decide today whether to withhold property taxes from the state, joining a revolt against Gov. Pete Wilson's plan to slash funds to local governments. Supervisor Maggie Kildee will ask board members at their meeting today to adopt an ordinance that bars the county's auditor-controller from turning over nearly $50 million in property tax revenue next year to Sacramento--a move state officials call illegal.

Los Angeles County Dist. Atty. Steve Cooley on Wednesday called for the resignation of Assessor John Noguez, whose office has been the target of a corruption probe. Cooley made the comments to reporters for several news organizations, a day after he announced that he planned to bring the case to a grand jury. "I don't think he should be there," Cooley told KNBC-TV Channel 4. "In my view, he should resign in the light of everything that's come out publicly. " Officials at the district attorney's office confirmed that Cooley would like Noguez to step down.

Los Angeles County Dist. Atty. Steve Cooley said Tuesday that the corruption investigation of Assessor John Noguez has grown to include multiple targets and that he intends to seek grand jury indictments in the near future. In his first public comments about the expanding criminal probe, Cooley also accused the union that represents assessor's office employees of interfering with the investigation by ordering members to refuse to cooperate without permission from Noguez's office.

There is a bit to cheer in the proposed budget that the City Council could take up as early as Friday. An uptick in property tax revenue provided a badly needed bit of room to maneuver. Cutbacks in services that might have led to the elimination of 600 jobs now may end up claiming about two-thirds as many. A modest increase to the city's reserve fund may also be possible. Those are the results of a thoughtful and meticulous process engaged in by the council's new Budget and Finance chair, Councilman Paul Krekorian.

Economists generally don't go into politics, which is probably a good thing for Christopher Thornberg , who has declared war on Proposition 13 . The popular 1978 ballot measure that capped property taxes in California is “one of the most horrendous, unfair, regressive taxes in the history of the United States,” the former UCLA economist declared at a televised hearing in Sacramento earlier this month. (You can view it here , starting at about 31:36 minutes.) Zap!

Los Angeles County Dist. Atty. Steve Cooley on Wednesday called for the resignation of Assessor John Noguez, whose office has been the target of a corruption probe. Cooley made the comments to reporters for several news organizations, a day after he announced that he planned to bring the case to a grand jury. "I don't think he should be there," Cooley told KNBC-TV Channel 4. "In my view, he should resign in the light of everything that's come out publicly. " Officials at the district attorney's office confirmed that Cooley would like Noguez to step down.

The "Blame 13" chorus is at it again. You can always count on it to sing "It's all Proposition 13's fault" during difficult economic times. The story has gone national, with columns in Time magazine and the New York Times taking shots at Proposition 13. The attacks are probably best summed up by an editorial cartoon picturing Proposition 13 as the beginning of the end for California civilization. Let's get the facts straight.

When Gary Teunissen decided to add 400 square feet to his 40-year-old ranch home in Orange, he realized the extra space created by extending the kitchen and enclosing a breezeway would boost his annual property tax bill by about $500. "The key decision was whether to remodel or buy," said Teunissen, a financial analyst for a national home builder. "The property tax issue was a big part of my analysis."

A Los Angeles City Council committee came up with a plan Tuesday to avoid laying off more than 200 city workers at least until Jan. 1, thanks in part to a last-minute discovery of new tax revenues. By realizing an additional $5.8 million in higher than expected property taxes and trimming money from city departments and contracts with outside consultants, the council's Budget and Finance Committee was able to put on hold a plan by Mayor Antonio Villaraigosa to eliminate 669 positions, 209 of which are currently filled.

Los Angeles County Dist. Atty. Steve Cooley said Tuesday that the corruption investigation of Assessor John Noguez has grown to include multiple targets and that he intends to seek grand jury indictments in the near future. In his first public comments about the expanding criminal probe, Cooley also accused the union that represents assessor's office employees of interfering with the investigation by ordering members to refuse to cooperate without permission from Noguez's office.

Los Angeles County prosecutors are examining large property tax breaks extended to the owners of the Old Spaghetti Factory, the now-closed Hollywood landmark, as part of their influence-peddling investigation of Assessor John Noguez. Prosecutors are also looking at more than a hundred Westside properties whose owners got secret, improper tax reductions from a former assessor's office employee who said he broke the rules hoping to generate contributions to Noguez's campaign account.

Corruption allegations roiling the Los Angeles County assessor's office have reached a former Hollywood landmark: the Old Spaghetti Factory on Sunset Boulevard. Last summer, Ramin Salari, a property tax consultant and campaign fundraiser for county Assessor John Noguez, lobbied to reduce the shuttered restaurant's tax bill because, he said, the land it sat on wasn't worth the $14 million his clients had paid for it. He convinced Noguez's staff to assess the shuttered eatery, and four smaller parcels nearby, for $7.2 million.

Los Angeles County could receive almost $50 million less than expected in property taxes next year, according to the latest estimates, which could lead to cuts in law enforcement, education and other services. Last year, Assessor John Noguez estimated that the county property tax base would grow by almost $18.7 billion for the next fiscal year. But he revised that figure to $5.1 billion last week. Property in Los Angeles County was valued at $1.1 trillion last year. Taxes paid on that real estate is the county's largest source of locally generated revenue and helps fund a variety of services and agencies, including the Sheriff's Department, county education office and Fire Department.

Los Angeles County supervisors sharply questioned Assessor John Noguez on Tuesday over his fluctuating tax estimates, saying they found his forecasts implausible and ordering an audit of his department. In December, Noguez estimated that the county's property tax base would grow by $18.7 billion for the next fiscal year. But last week he revised his estimate to only $5.1 billion, which could lead to the county receiving almost $50 million less than expected in revenues next year.

The Anaheim City Council Tuesday approved formation of a new tax district for the Summit, the third of three giant planned communities in the east Anaheim Hills. The action, approved unanimously after a public hearing, will mean higher property taxes for future homeowners when they move in. The extra $8 million that would be raised by the Summit's tax supplement will be used to pay back bonds over the next 25 years for road improvements, a water reservoir and a police substation.

Ask Mayor Antonio Villaraigosa whether he covets Gov. Jerry Brown's job and he answers: "If this were about running for governor, I wouldn't be tacking Prop. 13 on my forehead. " That certainly makes sense, at least based on conventional wisdom. As Villaraigosa pointed out in a Sacramento Press Club speech last week, the revered property tax limitation law is a political "third rail," although he challenged Brown to muster "the courage to test the voltage. " The governor brushed off the mayor.

Economists generally don't go into politics, which is probably a good thing for Christopher Thornberg , who has declared war on Proposition 13 . The popular 1978 ballot measure that capped property taxes in California is “one of the most horrendous, unfair, regressive taxes in the history of the United States,” the former UCLA economist declared at a televised hearing in Sacramento earlier this month. (You can view it here , starting at about 31:36 minutes.) Zap!

If you believe you're paying too much property tax because the county has overestimated the value of your home, you can seek a reduction. Here are tips on how to do this: •If you believe the assessment was unfair in the past, contact your county assessor's office or visit its website as soon as possible. At this time of year, many assessors are in the process of updating property values, so it's good to express your concerns before the new assessment is finalized. •Be cautious of any mail, email or phone solicitations by people or companies offering to contest your property valuation for a fee. You can usually do it yourself, except for a fee in some counties to file an appeal.