Tax fever
September 6, 2000

    In these times of state and federal budget surpluses and widespread prosperity, one would think that there would be plenty of money to go around, little need to exact even more dollars from the public.

    Yet, as a fascinating article in Cal-Tax Digest this month revealed, governments around the state are proposing record tax increases even though cities are pulling in record amounts of revenue. In particular, authors David Doerr and Ron Roach point to property value increases that have “poured millions into once-struggling city budgets” (even though “the property tax does not fund as large a share of city and county budgets” as in the past).

     If all the measures pass, California voters will pay an additional $300 million in new taxes. And that only includes a portion of the proposed tax increases, given that many proposals – including a handful in Orange County – have yet to be included in their tax-hike list.

     They point to November proposals for increased payroll taxes in San Francisco, homeless shelters tax in Santa Cruz, a sales tax extension for public transit in Alameda County, an “arts to zoo” tax in Fresno, hotel taxes in Santa Barbara and Napa County, and more.

     The Orange County Registrar of Voters lists a proposal that would authorize the Costa Mesa City Council to increase the hotel tax to pay for parks and open space, and a hotel-tax increase in Garden Grove.

    On the statewide ballot, Proposition 39 is likely to result in dramatic increases in local taxes to pay for school facility bonds, even though the state budget increases school spending significantly.

    Prop. 39 would eliminate the two-thirds vote requirement for local school initiatives, reducing it to 55 percent.

     According to the Howard Jarvis Taxpayers Association, 94 percent of California school bond initiatives would have passed since 1996 had that rule change been in effect. The net result: higher taxes for local property owners.

    Keep in mind that the state’s 2000-2001 budget is a record $100 billion, up 20 percent from 1999-2000. Federal spending is at record levels also.

    Yet the push for more tax dollars continues. One would think that the American electorate has bought the idea that government spending is the panacea for every problem. Will the tax-and-spend-fest ever end? Not until taxpayers regain their outrage.

 Copyright 2000 The Orange County Register