Tag: Lost Revenues

Attend Board Meeting to Stop Property Tax Giveaway

UPDATE:  More detailed data was provided and used to tabulate the following projections of lost revenue:

Prop 90 Cumulative Calculation
As the number of Prop 90 recipients increases each year, the annual amount of lost revenue also increases.
Prop 90 Annual Calculation
The County staff report states that each Prop 90 recipient receives between $2,500 and $3,000 savings per year.

ORIGINAL POST:

On Tuesday, June 28, 2016, at 3:00 pm, the El Dorado County Board of Supervisors will review whether or not they will extend Prop 90, which is a tax-break incentive for senior citizens to move into El Dorado County.  Prop 90 allows homeowners to transfer their tax base value when selling their house in the Bay Area and Southern California, which significantly lowers their property taxes on the house they subsequently purchase in El Dorado County.

Former Chief Administrative Officers have advised the Supervisors to reject Prop 90 because of the lost revenues to the County;  however, past Boards of Supervisors have extended Prop 90 due to pressure from the El Dorado County Association of Realtors.

Statements from the Chief Administrative Officer and Assessor from a 1989 memorandum:

Upon review of the proposition (copy attached) and material submitted by County Assessor John Thorne, I can see no value for El Dorado County in opting into the program authorized by Proposition 90. Not only is there no benefit to El Dorado County, the program would actually place a disservice on those citizens who currently own homes in the county and would exacerbate the inequity of property taxes already occurring in El Dorado County and the remainder of California. If adopted, the effect of such an ordinance in El Dorado County would be to reduce property tax revenues with no correlating reduction in demand for services from those citizens moving into our communities.

As you can see, it appears that counties such as ours would suffer a considerable economical loss, as the majority of people coming into our county are from more costly areas within the state.

Here are diagrams showing the calculations of lost revenue to El Dorado County due to Prop 90:

Prop 90 Annual Calculation
Lost revenue calculation per house, per year
Prop 90 Cumulative Calculation
Cumulative lost revenue calculation

The above calculations were made from information in staff reports from the El Dorado County website:

2014 Report by El Dorado County Assessor Karl Weiland
2016 Report by Director of Economic Development Jeff McLaughlin

Please attend the public hearing to voice your concerns about extending Prop 90.

Tuesday, June 28, 2016 at 3:00 pm
El Dorado County Board of Supervisors
330 Fair Lane, Building A
Placerville, CA 95667

To send in your comments via email, send to:

Supervisor Mikulaco <bosone@edcgov.us>,
Supervisor Frentzen <bostwo@edcgov.us>,
Supervisor Veerkamp <bosthree@edcgov.us>,
Supervisor Novasel <bosfive@edcgov.us>,
The BOSFOUR <bosfour@edcgov.us>,
Clerk of the Board <edc.cob@edcgov.us>

Subject: Prop 90, File #09-0992, Agenda Item #52

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