COM 0915.004 2004-2006 - Laserfiche WebLink

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EXHIBITS TABLE IA Conservative figures are used in this analysis. Rather than a 50% increase, assume a 43% increase for other properties. The 43% estimate is based on a small sample since the Assessor's Office was unable or unwilling to supply assessments form last year. Last year's assessments are not available on line; apparently they were deleted to make way for the new assessments. Appling the above indicates there is a 40% difference in the assessment between owner occupant homeowner and non- owner occupant this year; and for a new owner occupant homeowner buying from a non-owner occupant. This difference and this analysis do not include the already existing assessment exemptions which will increase this difference. Assume that the new tax rate will be lowered to $8.10, as per the news release (5-6-05). Assume we are comparing two similar properties adjacent to each other and having the same market value. As an example, listed below are five different hypothetical assessments. Tax brakes for the owner occupant, as compared to the non-owner occupied properties, will amount to the following. Year 1 40% of a $300,000 assessment is $120,000 x$8.10/1000=$ 972 tax break 40% of a $500,000 assessment is $200,000 x $8.10/1000 = $1,520 tax break 40% of a $750,000 assessment is $300,000 x $8.10/1000 = $2,430 tax break 40% of a $1,000,000 assessment is $400,000 x $8.10/1000 = $3,240 tax break 40% of a $1,500,000 assessment is $600,000 x $8.10/1000 = $4,860 tax break TABLE 1B Assume for the second year that the owner occupant homeowner has a 3% increase (3% limit by ordinance) while the other properties increase by a conservative 13%. The difference is 10%. Thus the accumulated difference is now approximately 50%. Also assume no change in the tax rate. Year 2 50% of a $300,000 assessment is $150,000 x $8.10/1000 = $1,215 tax break 50% of a $500,000 assessment is $250,000 x $8.10/1000 = $2,025 tax break 501/o of a $750,000 assessment is $375,000 x $8.10/1000 = $3,830 tax break 50% of a $1,000,000 assessment is $500,000 x $8.10/1000 = $4,050 tax break 501/6 of a $1,500,000 assessment is $750,000 x $8.10/1000 = $6,075 tax break As you can see from the above table, even with conservative market value increases, the regressive tax gets worse each and every year This is not tax reform, it is welfare for the wealthy, it damages the economy, and it reduces the inventory of affordable housing.