Property Taxes

California homes passed down from parents to their children carry potential property tax savings worth thousands of dollars a year. Thanks to a state proposition that took effect in 1986, known as the "parent-child reassessment exclusion," a child can inherit a parent's principal residence, whether modest or worth millions, without triggering a reassessment for property taxes.

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.

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.

After complaints from Los Angeles County assessor's office employees worried that their boss may have extended improper tax breaks to prominent campaign contributors, state Assemblyman Mike Gatto decided to introduce a bill to curb such practices. So he was shocked when Assessor John Noguez - whose alleged misdeeds inspired the proposed reform - beat him to the punch with a news release declaring his enthusiastic support for the bill, before it had been posted on the Legislature's website.

Now I've done it. I made a few idle comments last week about rethinking Proposition 13, and the column ticked off hordes of senior citizens — the most loyal of all newspaper readers. "The question I ask you is, would you have my husband and me homeless in order to balance the state budget?" asked Betty Vanole, 71, of Burbank. No, Betty, there's no need to start packing. "May we get together over a cup of coffee and talk about Proposition 13?" asked Barbara Menendez, 81, of the San Fernando Valley.

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.

If you own a home, it pays to know the tax breaks that could be available to you. Here are five deductions spotlighted by personal finance writer David Bakke for the Zillow real estate blog. For more specific information, see your tax preparer or call the IRS help line at (800) 829-1040. • Mortgage interest. You're generally entitled to reduce your taxable income by the amount of mortgage interest you pay, as long as you itemize deductions on your tax return. Your lender should have sent you a 1098 form in January showing exactly how much interest was paid.

After complaints from Los Angeles County assessor's office employees worried that their boss may have extended improper tax breaks to prominent campaign contributors, state Assemblyman Mike Gatto decided to introduce a bill to curb such practices. So he was shocked when Assessor John Noguez - whose alleged misdeeds inspired the proposed reform - beat him to the punch with a news release declaring his enthusiastic support for the bill, before it had been posted on the Legislature's website.

There is one more consideration that Brian Roney (letter regarding Prop. 13, Nov. 17) left out. Those long-term neighbors have already paid for streets and sidewalks, parks, fire and police stations and other administrative buildings. Maybe Roney is just paying extra taxes to catch up. EDWIN CANE San Gabriel

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.

A corruption probe into Los Angeles County Assessor John Noguez widened as investigators in two states served search warrants on a dozen locations, and new details emerged about Noguez's personal attention to the tax concerns of generous campaign contributors. As helicopters circled overhead, officials from the district attorney's office combed Noguez's Huntington Park home for several hours Wednesday, eventually carting away boxes of potential evidence. Noguez could not be reached for comment because he was in Mexico, said spokesman Louis Reyes.

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.

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.

If you own a home, it pays to know the tax breaks that could be available to you. Here are five deductions spotlighted by personal finance writer David Bakke for the Zillow real estate blog. For more specific information, see your tax preparer or call the IRS help line at (800) 829-1040. • Mortgage interest. You're generally entitled to reduce your taxable income by the amount of mortgage interest you pay, as long as you itemize deductions on your tax return. Your lender should have sent you a 1098 form in January showing exactly how much interest was paid.

Two weeks ago, I wrote about a lawsuit working its way through the state courts that poses a novel and fundamental challenge to Proposition 13, the tax initiative approved by California voters in 1978. According to the lawsuit, brought by former UCLA Chancellor Charles Young -- represented by William A. Norris -- Proposition 13's imposition of a two-thirds requirement for the Legislature to approve any tax increase may have so altered the arrangements of California government that it constitutes a revision of the Constitution rather than a mere amendment.

What if the most basic facts of California politics and government were suddenly upended? How different would the political life of this state be if the constitutional requirement that tax increases can only be approved by a two-thirds "supermajority" of the Legislature went away, and instead a simple majority could do the job? That provocative possibility has seemed beyond imagination ever since 1978, when Californians approved Proposition 13, the landmark initiative whose chief aim was to lower and control property taxes but that also imposed the two-thirds requirement, making it much more difficult for the government to raise all taxes.