Jarvis tax initiative cost to local government: 8 Billion Valley News (Van Nuys, Cal) 18 Oct 1977

dtmejia Member Photo

Clipped by dtmejia

Jarvis tax initiative cost to local government: 8 Billion
Valley News (Van Nuys, Cal) 18 Oct 1977 - Jarvis tax initiative cost to local government:...
Jarvis tax initiative cost to local government: $8 billion From page 1 divided up among local districts.. .Is the intent to cut local government services by $7 to $8 billion? If so. what sen-ices will be eliminated? Police and fire protection? Parks and recreation?" An official in the state controller's office said that the current percentage of fair market value collected in taxes now is 2.8 percent. If it is reduced to 1 percent, the current combined tax rate (for schools, cities, counties and special districts) of about $12 on a statewide average would be cut to about $4. Jarvis contends, however. "I don't think there will bea revenue loss from property taxes, which should be limited to property related services." He and other critics of the existing system complain too much of the property tax dollar no%v goes from non-property related services such as welfare and health care. Jarvis noted that his initiative provides for an annual 2 percent valuation increase on property. Also, when property is sold, the amount of sale would become the new assessed valuation The loss of revenue, he said, would be made up by the increased valuations, by a boom in remodeling he anticipates with the new tax structure and by putting tax exempt land back on the rolls (this is not provided form the amendment). He admitted that these would not occur the first year, but estimates the loss for the first 12 months at $3 billion rather than the $7 to $8 billion As for the petition drive, the cosponsor estimated that some 350,000 signatures have been collected to date. The deadline for submitting the petition^, to the state is Dec. 2 and Jarvis believes that about 700,000 signatures will be needed by then to have the 500.000 qualifie'd voters' names required for placement on the ballot. He said he is "optimistic" that the measure will garner the needed signatures and that it will get the simple majority required from \oters in the June election next year Regarding local impact if the measure is approved, Los Angeles County officials estimate their current SI.2 billion tax revenue would be cut to about S521 million if one-third of the taxes collected locally goes to the county as it now does on the average. Assistant County Administrative Officer Mike G^tthamer said he believes the measure will get on the ballot, but not approved in · the election. "I can't imagine any responsible taxpayer voting for it after he understands the implications." he said Gotthamer added the proposition could mean either the "closing of doors" in the county or "nothing." "My thinking is nothing, except the middle class would be hit with a bigger share of making up the loss of revenue through other taxes." he said. (Los Angeles city has not yet prepared an analysis on the proposition.) Another member of the chief administrative officer's staff said proposition would provide a to business. This is because anticipated increases in other taxes would not affect business, would be benefiting from lower property taxes, the official explained. It was pointed out, too. that substantial tax increases would with the sale of property and businesses are sold far less than residential property. Jarvis called the "boon to business" claim an "outright, premeditated, vicious he." He countered that busines would be backing the initiative that claim were true, "but not " Also, he said, if the cost of business goes down, then the savings will be passed on to consumers and, in the cases of apartments, to renters. However, others charge that increased profits are generally attractive to landlords and businesses than the passing of on to consumers and renters. The Assembly committee staff report said that in addition to shifting tax burderns, the proposition would result in many homeowners paying higher taxes than neighbors for the same services because they purchased their homes more recently. Jarvis' reply to this was system is perfect, but the plan his propostion is "1,000 percent better than what %ve have

Clipped from
  1. Valley News,
  2. 18 Oct 1977, Tue,
  3. Page 6

dtmejia Member Photo
  • Jarvis tax initiative cost to local government: 8 Billion Valley News (Van Nuys, Cal) 18 Oct 1977

    dtmejia – 14 Jan 2013

Want to comment on this Clipping? Sign up for a free account, or sign in