Property Tax Shift Hurting Local Agencies

On June 3, a group of county and city officials, representatives from local special districts, unions, business and the Ventura County Taxpayers Assn. gathered at the Ventura County government center to ask the governor and our state representatives to return local property tax dollars that have been shifted to the state.

What prompted this fairly diverse group of people to join in this effort? In the early 1990s the state, facing a deficit during the recession, decided to raid local property taxes to help balance the state budget.

Before the state shifted these taxes, the money was used by our county, some of our cities and many of our local special districts to provide services to citizens. The effect of this tax shift was visible throughout local government in Ventura County, including most of our special districts. One of the most visible examples is our library district, which was forced to shorten hours and cut book and periodical purchases. Millions of dollars were shifted and continue to be shifted from local agencies to the state.

The money was nominally shifted to the schools, but the schools did not receive any additional money as a result. That’s because the state was already legally obligated to provide a portion of its budget to the schools; it merely reduced its funding by the same amount received by the schools from the tax shift.

Under this shift, the state is taking property taxes levied for use by local agencies and districts and using that money for another purpose: to balance the state budget. This “shell game” with our local property taxes must stop. It is a subterfuge on the taxpayers.

Part of the current state surplus comes from local property taxes that continue to be shifted from local agencies to the state. Now that the state has a surplus, this shift should be reversed and funds should be returned to the local agencies.

Local property taxpayers have repeatedly stated that they want local property taxes to stay local, to be used for local projects and services. Without this tax money, some local agencies are attempting to make up the loss by increasing service rates or fees. Those who pay property taxes, therefore, are asked to pay twice for a service that had been provided for their tax dollars. This double burden on property owners must stop.

Many of elected representatives in Sacramento have experience in local government, either at the county supervisor or city council level, and therefore know how this tax shift has hurt local agencies and taxpayers. In addition, with its current budget surplus, the state has the financial ability to rectify the problem, so this year is an opportune time to return this tax money.

The June 3 gathering resulted in a jointly signed letter to the governor and Ventura County’s state legislators requesting the return of local property tax dollars. The group’s diversity attested to this being a broad-based effort. Similar efforts are being orchestrated throughout the state.

Now is the time to end this injustice to local taxpayers.