Stealth Property Tax Increases May be Coming

Taxpayers squeezed again

Taxpayers are getting squeezed again!

A report has surfaced that the Los Angeles Unified School District Board of Education plans to increase property taxes in order to pay off bonded indebtedness, even though voters approved the bonds and an accompanying tax levy to pay for them.

It seems there is fine print in the voter approved bond issue that enables bond holders to demand a property tax increase to assure the bonds will be paid off if the previously approved tax increase is found to be inadequate to do so. Given the declining assessed values of property throughout the State, and particularly in Los Angeles, the voter approved tax levy now appears inadequate to pay off the bonds. At least so say the bond holders.

This may come as quite a shock to the property owners who think that Proposition 13 requires that all tax increases must be voter approved. Apparently the truth is something different.

Voters throughout California have approved special school bond issues over the years and in some cases bond issues for other purposes. It just may be that they are all ticking time bombs given the declining revenues from property taxes. Is a wave of property tax increases in the offing throughout much of California?

About Over But Not Out

A retired Orange County employee, and moderate Republican. The editor seriously does not know OBNO's identity as did not the former editor, but his point of view is obviously interesting and valued.