Q) Why is a constitutional amendment needed and what will it do to lower my property tax bill?
A) The state constitution lays the foundation for our current property taxation system. It was written in two separate sections to assure government’s ability to tax our property in many cases without limit. To implement a property taxation system where the property owner is protected from the sort of unreasonable tax increases we have seen in the last several years requires changes to both constitutional sections. The rollback provisions within these measures reverse the recent tax increases that for many have far exceeded personal income growth and the ability to pay. The measure also establishes a 2% maximum annual tax levy increase, plus the tax attributable to and paid for by new growth and any amounts approved by a 2/3 vote in a November election. Taxpayers have budgets and now to prevent excessive taxation each taxing entity will have the equivalent, levy limits (a cap on property tax revenue) not more blank checks. With levy limits it will be easier for taxing entities to cut out waste and inefficiency than to ask voters to raise their property taxes.

Q) In 2006 we voted on and approved Prop 101 referred by the Legislature which sounded a lot like this measure. Why is another change necessary?
A) Prop 101 excluded all taxing entities other than counties, cities, towns and community college districts from levy limits. We are merely eliminating this loophole to include all taxing entities under these wise levy limits.

Q) I have heard that this measure may actually lower our property taxes in 2008 even before we can vote on the measure in November 2008, how will this work?
A)Because so many property owners (regardless of the property classification) have seen excessive property tax increases the measure was architected in a way that provides an incentive of a lesser levy rollback for taxing entities which choose to adopt the provisions of this measure. In this way the consequences of a more severe levy rollback in 2009 can be avoided and the taxpayers benefit by lower tax increases.

Q) Will this hurt my local school or fire district?
A) The measures will NOT reduce school funding yet they will lower the property tax burden for the schools that today consume 65% to 75% of our property tax dollars. As mandated by the voters and Prop 301 passed in 2000 the Legislature must make up any shortfall in school revenue. Property taxes unlike income and sales taxes are not based on ones ability to pay since today your taxes increase just because your neighbor got a great price when selling their home. Taxing entities like fire districts that manage their finances without taking advantage of their current blank check authority in 2008 will hardly be affected, yet other taxing entities that do not show such restraint will face a larger budgetary correction. Existing tax rate caps are ineffective for example when valuations go up by 30% to 50% in one year, not so with levy limits.

Q) Will this measure permit additional funds if needed by a taxing entity?
A) Absolutely, nothing in this measure prevents the people from taxing themselves. However since a property tax increase is effectively a mortgage on our property and to assure that the increase is needed and supported by the taxpayers we require a 2/3 vote in a November election for approval.

Q) Will all property owners benefit from this measure?
A)Yes. The savings in 2009 due to the LEVY measure will be equal by percentage for all properties (regardless of class) having the same set of taxing entities. In other words all those properties in the local area. The savings in 2010 due to the VALUATION measure varies depending on your valuation increase since either 2003 or your year of purchase. Those who had high valuation increases will see greater reductions in value and taxes.

Q) Much of the measure talks about limits on tax increases. Is there a way that the voters can require lower levy limits if a taxing entity for example was not spending our tax dollars wisely?
A) Yes. For the first time the voters will be able to petition for and reduce the levy limit lowering the taxing ability of a particular taxing entity. This will help to assure accountability as the voter/taxpayer will have the last word about property taxes.

Q) If we experience an economic downturn will taxes continue to increase by 2% per year like in the good times?
A) Not necessarily. The 2% increase is a maximum. This levy adjustment is tied to the Consumer Price Index which means that the 2% increase could actually be a decrease or an increase of less than 2%. We did this so that government revenue will share in the good times as well as the bad.

Q) There has been talk of imposing a statewide property tax. Will this measure protect the taxpayer by giving us a say in such matters?
A) Yes, approval of the initial levy of this new taxing entity will require the separate approval of 2/3 of those voting on the issue in each county.

Q) I understand that the K-12 schools are not affected but how will government continue to provide necessary services if we are paying less tax?
A) First and foremost they will have to reduce waste and inefficiency. The Levy measure controls government revenue. It allows for a 2% per-year property tax increase, plus Improvements made to existing properties and all the new growth both discounted for tax purposes to the 2003 baseline value. By doing this real estate price inflation since 2003 is effectively eliminated from property tax calculations benefiting existing and future property owners.

Q) How many signatures are required to qualify for the November 2008 ballot?
A) 230,047 signatures of registered voters. We are aiming for at least 275,000 by July 3rd 2008. To put this in perspective if we have 500 dedicated volunteer’s statewide collecting just 8 signatures each week between now and July 2008 we will have qualified for the ballot! The secret is in the number and commitment of volunteers we have working between now and July 2008. I can’t think of one person who wouldn’t like to save hundreds or thousands on their taxes each year and at the same time send the message that Government spending is out of control and that we are fed up with having to pay for it.

Q) I heard that the measures are even better than Prop 13 in that new buyers did not have to pay a larger share of the tax burden and that the taxable value of property remains unchanged following purchase. How does this work?
A) New home buyers including us should we relocate, our children and grandchildren when they purchase a home or other property will pay taxes like those paid by the previous owner based on the discounted 2003 baseline value not the inflated market value. Property taxes will remain predictable and affordable with NO TAX PENALTY FOR BUYING A USED OR NEW HOME.

Q) I took a look at the last several tax bills. I was one of the lucky few whose taxes went down by $25, but this hardly made up for the $400 increase in the previous couple of years. Will this measure correct and reverse the previous large increases?
A) Significant tax reductions will result in 2009 from the levy rollback to the average of the 2005-2008 ad valorem levies of each taxing entity. For those with large valuation increases since 2003, you will see another sizable tax reduction in 2010 resulting from the valuation rollback to the parcels actual 2003 value, or for newer properties to the value of comparable properties that were rolled back establishing the 2003 valuation baseline.

Q) I am a renter and my Landlord told me that the last several rent increases were due to his increasing property taxes. Will this measure help me?
A) It sure will. The double digit property tax increases for property owners equates to the equivalent of a 13th rent payment each year since Landlords just pass on their increased costs. If you hope to become a homeowner lower taxes will help make it possible for you to save a down payment, so act now and support this measure.