For millions of California homeowners, Saturday was a day that will live in infamy. Without a single public hearing, the California Assembly passed Assembly Constitutional Amendment No. 8 (ACA 8), the most egregious attack on Proposition 13 ever to come out of the Legislature.
ACA 8 would repeal Prop. 13's requirement that local "special taxes" (taxes intended for a specific purpose or purposes) be approved by a two-thirds vote. Instead, special taxes imposed for the repayment of local bonded indebtedness would be reduced to 55 percent. The ostensible justification for ACA 8 is to make it easier to finance local "infrastructure."
There are several reasons why ACA 8 will inevitably inflict severe harm on California homeowners. First, while state bonds are repaid out of the state's general fund -- into which most Californians contribute through income or sales taxes -- the same is not true for local bonds. Local bonds, usually referred to as "general obligation" bonds, are repaid exclusively by property owners. That means that voters who do not own property can vote to raise taxes on those who do. Read the rest of the reasons at The Howard Jarvis Taxpayers Association
Read more: Bill Handel - KFI AM 640 More Stimulating Talk Radio
ACA 8 would repeal Prop. 13's requirement that local "special taxes" (taxes intended for a specific purpose or purposes) be approved by a two-thirds vote. Instead, special taxes imposed for the repayment of local bonded indebtedness would be reduced to 55 percent. The ostensible justification for ACA 8 is to make it easier to finance local "infrastructure."
There are several reasons why ACA 8 will inevitably inflict severe harm on California homeowners. First, while state bonds are repaid out of the state's general fund -- into which most Californians contribute through income or sales taxes -- the same is not true for local bonds. Local bonds, usually referred to as "general obligation" bonds, are repaid exclusively by property owners. That means that voters who do not own property can vote to raise taxes on those who do. Read the rest of the reasons at The Howard Jarvis Taxpayers Association
Read more: Bill Handel - KFI AM 640 More Stimulating Talk Radio