Geneva Lawless

Our recommendation for the following 2 California propositions for the June 3rd election take into consideration the over 5,000 households in mobile home parks throughout Santa Cruz County. Many of these residents could not afford to stay in their homes if rent control was taken away.

Proposition 98 -- NO
The measure restricts the power of local governments to use eminent domain and institute rent control. It follows the failure of a similar measure, Proposition 90, in 2006. Proponents say the measure is needed to rein in government's ability to unfairly seize property and put undue checks on landowners.

Proposition 99 -- YES
The measure, a response to Proposition 98 and concerns about heavy-handed government, restricts local governments from using eminent domain on residential properties, but does not apply to commercial or agricultural properties. The initiative also does not affect rent control. Supporters say the government needs to retain certain powers to advance public interest. The proposition contains language so that if both measures pass, this one stands.

Don't forget to get out and vote on June 3, 2008!

Let’s start back in the late 70’s when it all started. Prop 13, also known as the ‘Jarvis Gann Amendment’, was brought on by the overzealous California Tax & Spend boys up in Sacramento. They are still trying to get in your pocketbook today.

Back then the average house/property tax percentage was 3% of the value placed on the property by the County Assessor . Property values in the early to mid 70’s were moving upwards pretty fast, not unlike what we have just observed in the past three years. This had nothing to do with what you paid for your home even if you had bought it twenty years prior to that time.

Let’s say your taxes in 1972 were $300 per year. By 1976 your taxes were $600 and steadily climbing. The average wage then was around $600 per month here in Santa Cruz. Wow, that’s 8.5% of your income before State and Federal Taxes. Can you imagine what your property taxes would be if that was the case today.? The average Westlake/upper Westside properties are valued around one million dollars, $1,000,000.00 Your property taxes would be around $34,000.00 per year. YIKES ! You’d have to make $239,000.00 a year in order to pay those taxes at the same percentage as under the old system. I know not everyone in the area makes that much money.

Some people paid as little as $25,000.00 when they bought their homes back then and they still live in the house. Their property taxes are probably around $800.00 +- now and they are retired. If it wasn’t for ‘Prop13’ those same people would be in the poor house or living with their kids. Not a good scenario for either party. ‘Prop 13’ has it’s good points and one of them was, as I just mentioned, so that seniors weren’t forced to sell their homes. Others would argue that “It’s not fair we have to pay the Lions share”. Be thankful that you don’t have to pay the 3.1+% plus assessments.

What would happen to the value of your home if ‘Prop13’ was abolished? Could you afford to pay the NEW taxes? The answer is most likely NO. Your property value would plummet and you’d be stuck making payments on the value of air. Who would want to buy your home when the value is so unsure? Foreclosures ? You bet ! You’d all reapply to the Tax Assessor’s office for property value re-evaluation . They’d be overwhelmed by the sheer volume of requests, need to hire more employees, and wouldn’t get the value down to where you wanted it to be so you could afford stay in your home. It’s a LOOSE, LOOSE situation for all sides, You, County, State, Banks/Investors and on and on and on.

We know what we have now and can live with it. It’s been that way since 1979. If you desire ‘change’ go to the bank I’m sure they have plenty.

Roger Lawless has been a resident of Santa Cruz Co since 1965 and has been a REALTOR at Century 21 Award Real Estate since 1985. His opinions are his own.

Roger & Genie's blog: http://rogerandgenie.blogspot.com/