I HAVEN'T HAD HIT A GAVEL IN A
MINUTE SO I GOT A LITTLE
OVERZEALOUS WELCOME EVERYONE.
MAHOOD STOOD THE JOINT
INFORMATION HEARINGS IT'S SENATE
COMMITTEE ON GOVERNANCE AND
FINANCE IN THE ASSEMBLY
COMMITTEES ON BUDGET AND REVENUE
AND TAXATION THANK YOU. A CHAIR
TING FOR BEING HERE AND THANK
YOU ASSEMBLY MEMBER OBERNOLTE.
WITHOUT WHEN I LET A ASSEMBLY
MEMBER TING OPEN.
THANK YOU IT'S A VERY EXCITING
TO BE HERE AT ONE OF THE
HEARINGS ARE REGARDING THIS SITE
BALLOT MEASURE.
VERY MUCH APPRECIATE THE CHAIR
FOR HOLDING THIS HOME WHILE I
BELIEVE THE BALLOT MEASURE IS
VERY LAUDABLE IN TERMS OF WHAT
IT WOULD LIKE TO DO. I DO HAVE.
FAIRLY SIGNIFICANT FEARS THAT
HE WOULD CONTINUE TO EXACERBATE
THE HOUSING AFFORDABILITY CRISIS
THAT WE HAVE.
SURE IN THE STATE THAT HE WOULD
DIE CONTINUE TO. COME. CONTINUE
TO RESTRICT OUR HOUSING SUPPLY
DOES NOT HELP US WITH OUR HOUSE
IS A PLEASURE TO KNOW NUMBER US
HAVE.
BEEN CHAMPING UP AND DOWN THE
STATE AND.
IT WOULD ALSO A POTENTIALLY
HAVE REVENUE IMPLICATIONS FOR
OUR SCHOOLS AND OUR EDUCATIONAL
SYSTEM SO I VERY MUCH CHAU
LOOKING FORWARD TO THAT.
DIALOGUE TODAY I THINK THIS IS
EXACTLY WHAT THE. PEOPLE AT HOPE
WE WOULD HAVE IS THAT WE WOULD
HAVE A VERY ON NOW FORTHRIGHT.
POLICY DISCUSSION ABOUT THESE
BALLOT MEASURE THAT
UNFORTUNATELY I GET DEBATED IN
THIRTY SECOND COMMERCIALS
THROUGHOUT MOST OF THE CAMP.
WITH THAT WHILE WE HAVE A REVIEW
OF THE INITIATIVE MISTER YOU ARE.
WHICH ELECT BEGIN.
THANK YOU MADAM CHAIR OF
GRANULAR WITH THE LEGISLATIVE
ANALYST'S OFFICE BEFORE I GO
INTO MY PRESENTATION US MONEY A
LITTLE BIT OF CONTEXT ON OUR
OFFICES ROLE IN THE INITIATIVE
PROCESS WHICH IS A LITTLE BIT
DIFFERENT THAN OUR TRADITIONAL
ROLE AND SAY. THE BUDGET OR
POLICY PROCESS WHERE WE OFTEN
OFFER RECOMMENDATIONS OR
COMMENTS ON WHETHER OR NOT A
POLICY IS GOOD OR BAD.
OUR ROLE IN THE INITIAL PROCESS
IS A LITTLE BIT DIFFERENT THE
VOTERS HAVE PASSED US WITH BEING
AN IMPARTIAL OBJECTIVE THIRD
PARTY THAT.
ASSESSES THE FISCAL EFFECTS OF
A MEASURE BUT IN THAT ROLE WE
DON'T TAKE POSITIONS ON MEASURES
WE DON'T.
OFFER COMMENTARY ON THE MERITS
OF THE POLICY CHANGES.
WE.
FOCUS STRICTLY ON ESTIMATING
THE MEASURES FISCAL FAX.
WITHOUT A MIND.
OF A PREPARE TO HAND OUT FOR
TODAY'S PRESENTATION I HOPE YOU
ALL HAVE IT IN FRONT OF YOU.
AND AND ALSO WITH A LITTLE BIT
OF BACKGROUND JUST ON
CALIFORNIA'S PROPERTY TAX SYSTEM
THE PROPERTY TAXES THE SINGLE
LARGEST.
TAX REVENUE SOURCE FOR LOW
GOVERNMENTS IN CALIFORNIA THAT
SCHOOL CITIES COUNTIES AND
SPECIAL DISTRICTS.
AND IT RAISES OVER SIXTY BILLION
DOLLARS A YEAR FOR INDIVIDUAL
FOR AN INDIVIDUAL PROPERTY OWNER
THEIR TAX BILL IS EQUAL TO THEIR
TAX RATE TIMES THEIR TAX WILL
VALUE OR WHAT'S COMMONLY
REFERRED TO THE ASSESSED VALUE.
THE TYPICAL TAX RATE IS ONE
POINT ONE PERCENT I'M TAXES THE
TAX WILL VALUE IS BASED ON THE
PURCHASE PRICE OF A HOME.
AND.
YEAR THE HOMES PURCHASED IT
SAID IT'S PURCHASE PRICE AND
THEN EACH YEAR THEREAFTER IT'S
ADJUSTED FOR INFLATION BY UP TO
TWO PERCENT A YEAR.
UNDER THIS SYSTEM MOST HOMES ARE
TAXED AT A VALUE THAT IS WELL
BELOW THEIR MARKET VALUE IN THIS
IS BECAUSE. THE MARKET VALUE OF
MOST HOMES GROWS A FASTER THAN
TWO PERCENT IN MOST YEARS.
AND THIS RESULTS IN A
DIFFERENCE BETWEEN THE TAXABLE
VALUE IN THE MARKET VALUE OF A
HOME.
AND BECAUSE OF THIS NGUYEN MANY
EXISTING HOME BUYERS LOOK TO
MOVE TO A DIFFERENT HOME. THEY
OFTEN ARE FACED WITH.
THE POSSIBILITY OF PAYING
HIGHER PROPERTY TAXES IN THAT
NEW HOME AND THAT'S BECAUSE THE
EXISTING HOME THEY'RE PAYING
TAXES BASED ON.
TAXABLE VALUE THAT'S BELOW
CURRENT MARKET VALUES WHEN THEY
BUY THE NEW HOME IT WILL BE
ASSESSED AT ITS PURCHASE PRICE
WHICH IS REFLECTIVE OF THE
CURRENT MARKET VALUES. AND
THERE'S SOME RESEARCH BY THAT'S
BEEN TO MY OUR OFFICE AND
ACADEMIC RESEARCHERS THAT
SUGGESTS THAT THIS THE
POSSIBILITY OF THIS INCREASE.
AND PROPERTY TAXES CAN
DISCOURAGE SOME PEOPLE OF FROM
SELLING THEIR HOME AND BUYING
ANOTHER ONE WHEN THEY MAY
OTHERWISE FIND IT AND IT
ADVANTAGEOUS TO DO SO.
IMPARTIALLY WITH THAT IN MIND.
PASSED INITIATIVES HAVE CREATED
SOME SPECIAL RULES ALLOW CERTAIN
HOMEOWNERS.
TO MOVE TO A DIFFERENT HOME
WHILE KEEPING THE PROPERTY TAX
BILL FOR THE EXISTING HOME.
AND TO QUALIFY FOR THESE RULES
THE THE NEW HOME HAS TO BE OF
EQUAL OR LESSER VALUE. OF THE
HOMEOWNER HAS TO BE OVER FIFTY
FIVE OR SEVERELY DISABLED OR OWN
A PROPERTY THAT WAS AFFECTED BY
A NATURAL DISASTER OR
CONTAMINATION.
THEY'VE US MOVING WITHIN THE
COUNTY OR TO A SELECT NUMBER OF
OTHER COUNTIES WHERE THE BOARD
OF SUPERVISORS HAS TAKEN A VOTE
TO PARTICIPATE IN THE PROGRAM.
AND ALLOW SOMEONE TO MOVE ACROSS
COUNTY LINES AND BRING THEIR
PROPERTY TAX BILL WITH THEM.
AND GENERALLY THESE RULES CAN
ONLY BE USED.
ONCE
AND A LIFETIME.
OF THIS MEASURE WOULD EXPAND OF
THESE US MARSHALS ALLOW THE
SERRANO TO HOMEOWNERS I JUST
MENTION TO TAKE THEIR PROPERTY
TAX BILL WITH THEM TO A
DIFFERENT HOME.
IT WOULD EXPAND INFORMING WAYS
FIRST IT WOULD ALLOW HOMEOWNERS
TO MOVE. ANYWHERE WITHIN THE
STATE.
INCLUDING TO COUNTIES WHERE THE
BOARD SUPERVISORS HAS NOT TAKEN
THE VOTE TO PARTICIPATE IN THE
PROGRAM.
IT ALLOWS THE A TAX BILL TO BE
TRANSFERRED TO A MORE EXPENSIVE
HOME WHERE IS RIGHT NOW HAS TO
BE HOME OF EQUAL OR LESSER VALUE.
IT.
IN IT.
ALSO REDUCES THE TAXES THAT
WOULD BE PAID FOR A HOME A NEWLY
PURCHASED HOME THAT IS. OF
LESSER VALUE.
THAN THE EXISTING HOMEOWNER
CURRENT LAW WIN A HOMEOWNER BUYS
A NEW HOME THAT IS LESS
EXPENSIVE THEIR PROPERTY TAX
BILL STAYS THE SAME. UNDER THIS
MEASURE THEIR TAX BILL WOULD
ACTUALLY GO DOWN.
AND FINALLY OF THE MEASURE WOULD
A REMOVED THE LIMIT ON THE
NUMBER OF TIMES IN A LIFETIME
HOMEOWNER THE HOMEOWNER CAN TAKE
ADVANTAGE.
OF THE.
THESE RULES.
ON PAGE THREE OF THE HANDOUT I
WALK THROUGH AN EXAMPLETO GIVE
AN IDEA ABOUT HOW THESE RULES
WOULD WORK.
STARTING WITH A A HYPOTHETICAL
FIFTY FIVE YEAR OLD COUPLE WHO
OWNS A HOME.
WITH THE TAXABLE VALUE OF TWO
HUNDRED THOUSAND AND A MARKET
VALUE OF SIX HUNDRED THOUSAND.
DEPARTMENT TAX RATE OF ONE
POINT ONE PERCENT.
OTHER TAX BILL IS TWENTY TWO
HUNDRED DOLLARS A YEAR.
AND THIS COUPLES COUPLE IS
CONSIDERING MOVING TO ONE OF TWO
HOUSES A MORE EXPENSIVE HOME
THAT IS WHERE SEVEN HUNDRED
THOUSAND. OR LESS EXPENSIVE HOME
IT'S WORTH FOREIGN FIFTY
THOUSAND UNDER CURRENT LAW.
MOVING TO THE MORE EXPENSIVE
HOME THAT HOME.
BECAUSE IT IS MORE EXPENSIVE
THAN THEIR EXISTING HOME IT
WOULD NOT QUALIFY FOR THE
EXISTING RULES AND THEREFORE
WOULD BE TAXES PURCHASE PRICE
RESULTING. IN THE INCREASE IN
THEIR TAX BILL TWO SEVENTY SEVEN
HUNDRED DOLLARS A YEAR.
OF THE LESS EXPENSIVE HOME WOULD
CURRENTLY QUALIFY FOR THE RULES
AND THEREFORE THEY WOULD KEEP
THEIR PROPERTY TAX BILL AT
TWENTY TWO HUNDRED DOLLARS A
YEAR.
NOW TURNING TO PAGE FOUR. WE SEE
HOW THIS WOULD CHANGE UNDER THE
PROPOSED MEASURE.
WITH THE MORE EXPENSIVE HOME
THEIR TAX BILL WOULD INCREASE
SOMEWHAT FROM TWENTY TWO HUNDRED
TO THIRTY THREE HUNDRED. BUT
SIGNIFICANTLY LESS THAN WHAT IN
THE CURRENT LAW WORK GOES TO
SEVENTY SEVEN HUNDRED DOLLARS A
YEAR. AND THIS THIRTY THREE
HUNDRED DOLLAR.
ANNUAL TAX BILL A REFLECTS A
THREE HUNDRED THOUSAND DOLLAR
TAXABLE VALUE.
WHICH IS THE THE PRODUCT OF
THIS FORMULA YOU SEE. HERE UNDER
THE FIRST BULLET WHICH IS.
AS OUTLINED IN THE MEASURE YOU
WOULD TAKE THE PRIOR HOMES TAX
WILL VALUE. AND ADD TO IT THE
DIFFERENCE IN MARKET VALUES
BETWEEN THE NEW HOME.
AND THE PRIOR HOME.
A SECOND WILL YOU CAN SEE THAT.
THERE FOR IN BUYING THE LESS
EXPENSIVE HOME UNDER THE MEASURE
THE HOMEOWNERS TAX BILL WOULD GO
DOWN FROM TWENTY TWO HUNDRED. TO
ONE THOUSAND SIX HUNDRED AND
FIFTY IN THIS WOULD.
BASED ON A TAX WILL VALUE OF A
HUNDRED AND FIFTY THOUSAND.
WHICH IS DERIVED FROM THE SECOND
FORMALLY HERE ON PAGE FOUR.
WHICH IS GENERALLY TAKING THE
PRIOR HOME SEXUAL VALUE. AND
MULTIPLYING THAT BY THE RATIO OF
THE NEW HOMES MARKET VALUE.
DIVIDED BY THE OLD HOMES MARKET
VALUE.
AND THEN FINALLY TURN TO PAGE
FIVE IS A SUMMARY OF OUR.
ESTIMATE OF THE MEASURES FISCAL
FAX
I'M BEFORE GOING INTO THE
DETAILS I JUST WANTED TO MENTION
THAT.
WE ARE STILL FINALIZING THE
ESTIMATES THAT WILL APPEAR IN
THE VOTER GUIDE IN THE VOTING
MATERIALS FOR NOVEMBER THE
NUMBERS THAT ARE REFLECTED HERE
ARE BASED ON THE ANALYSIS THAT
WE UNDERTOOK IN THE FALL FOR THE
TITLE AND SUMMARY STAGE IN
NUMBERS THAT WENT OUT AS PART OF
THE. PETITIONS THAT WERE
PRESENTED TO VOTERS.
.
SO WITH THAT IN MIND WE FIND
THAT THE MOST SIGNIFICANT FISCAL
AFFECT OF THE MEASURE IS A
REDUCTION IN PROPERTY TAX
REVENUES.
TO LOCAL GOVERNMENTS.
IN THE FIRST YEARS WE ESTIMATE
THAT SCHOOLS AND OTHER LOCAL
GOVERNMENTS WOULD EACH
LOSE A OVER A HUNDRED MILLION
DOLLARS A YEAR.
AND THAT THESE LOSSES WOULD GROW
OVER TIME.
I'LL PROBABLY REACHING AROUND A
BILLION DOLLARS.
A YEAR.
THESE LOSSES ARE THE THE NET
EFFECT OF A COUPLE OF MOVING
PIECES.
ARE ON THE NEGATIVE SIDE.
YOU HAVE A SIGNIFICANT PORTION
OF HOMEBUYERS EACH YEAR ARE MADE
UP BY THOSE WHO ARE OVER FIFTY
FIVE SOMEWHERE BETWEEN. A
QUARTER AND A THIRD OF HOME
BUYERS IN RECENT YEARS ARE OVER
FIFTY FIVE. AND THAT MEANS THERE
ARE SOMEWHERE AROUND EIGHTY
THOUSAND TWO HUNDRED THOUSAND.
HOMEBUYERS WHO ARE POTENTIALLY
ELIGIBLE FOR A TAX BREAK UNDER
THIS INITIATIVE.
AND ONLY A MINORITY OF THOSE
HOME BUYERS ARE RECEIVING. A TAX
BREAK UNDER THE CURRENT RULES SO
THAT MEANS WE GET SICK A
SIGNIFICANT EXPANSION.
OF.
THE NUMBER OF PEOPLE ELIGIBLE
FOR THAT TAX BREAK WHICH WOULD
MEAN THEY BE PAYING LESS
PROPERTY TAXES WHICH MAY IN TURN
LOCAL GOVERNMENTS WOULD RECEIVE
LESS REVENUE.
ON THE OTHER SIDE.
.
THERE'S SOME THERE'S SOME
EVIDENCE THAT WHEN HOMEOWNERS
RECEIVE A PROPERTY TAX SAVINGS
THAT CAN RESULT IN AN INCREASE
AND HOME PRICES IN THERE'S A FEW
REASONS FOR THIS BUT JUST IN
GENERAL. IF YOU THINK.
IF YOU THINK ABOUT A HOME BUYER
THEY HAVE A CERTAIN BUDGET THAT
THEY'RE WILLING TO PAY FOR A
HOUSE.
AND THAT INCLUDES IN THAT
BUDGET IS HOW MUCH THEY HAVE TO
SET ASIDE EACH YEAR FOR THEIR
ANNUAL PROPERTY TAX PAYMENT. IF
THE AMOUNT THAT THEY HAVE TO PAY
FOR PROPERTY TAXES GOES DOWN.
THAT MIGHT MAKE THEM WILLING TO
PAY LITTLE BIT MORE IN TERMS OF
THE PRICE OF THE HOUSE OR IT
COULD TAKE SOMEONE WHO'S ON THE
MARGIN OF BEING A HOME BUYER.
MAYBE THEY CAN'T QUITE AFFORD IT
IF THE PROPERTY TAXES COME DOWN
A LITTLE BIT THAN PURCHASING
THAT HOUSE MAY FALL INTO THEIR
BUDGET SO IT COULD.
ENCOURAGE MORE HOME BUYERS.
TO BUY HOMES.
THERE'S BEEN SOME RESEARCH
TRYING TO MEASURE THE EFFECT OF
PROJECT SAVINGS ON HOME PRICES.
ONE STUDY TRYING TO LOOK AT THE
EFFECT OF THE SAVINGS A PROP
THIRTEEN IN GENERAL SUGGESTS
THAT.
EACH DOLLAR PROPERTY TAX SAVINGS
RELATES TO SEVEN DOLLAR INCREASE
IN AGGREGATE PROPERTY VALUES AND
THAT.
TRANSLATES INTO SEVEN CENTS
MORE PROPERTY TAXES SO FOR EACH
DOLLAR OF PROPERTY TAX SAVINGS
OR FROM A LOCAL GOVERNMENTS
PERSPECTIVE. A PROPERTY TAX
REVENUE REDUCTION A YOU MIGHT
HAVE AN OFFSETTING AFFECT
SOMEWHERE IN THE NEIGHBORHOOD OF
SEVEN CENTS OF OF AN OFFSETTING
INCREASE FROM THIS HOME PRICE
AFFECT.
ALSO SOME OFFSETTING EFFECT BUT
STILL SMALL RELATIVE TO THE TO
THE MAGNITUDE OF THE LOSSES.
AND THE STATE DOES NOT RECEIVE
A PROPERTY TAXES DIRECTLY BUT
THE STATE'S BUDGET WOULD BE.
IMPACTED BY THIS MEASURE. OF
BECAUSE STATE LAW GUARANTEES
SCHOOLS A CERTAIN LEVEL FUNDING
THROUGH A COMBINATION OF STATE
GENERAL FUND IN PROPERTY TAXES.
AND.
WIN PROPERTY TAXES FOR SCHOOLS
GO DOWN.
THEN THAT MEANS THAT STAGE
OFTEN ALLOCATIONS OF SCHOOLS
HAVE TO GO UP TO MAKE UP. THE
DIFFERENCE.
AND THEN JUST BRIEFLY A FEW
OTHER SMALLER FISCAL EFFECTS
FROM THE MEASURE OF THE MEASURE
WOULD LIKELY RESULT AND.
SOME INCREASE IN PROPERTY
TRANSFER TAX REVENUES.
THE INCREASE IN INCOME TAXES
FROM A PRIMARILY FROM INCREASED
CAPITAL GAINS FROM HOME SALES.
AND.
HIGHER ADMINISTRATIVE COSTS FOR
COUNTY ASSESSORS ESPECIALLY.
AND THIS THIS COULD BE IS
ESPECIALLY SIGNIFICANT AND THE
SHORT TERM AS COUNTY ASSESSORS
TRIED TO KIND OF ESTABLISH THE
MAKE.
TAKE ON THE ONE TIME EXERCISE
OF ESTABLISHING THE
INFRASTRUCTURE NECESSARY TO
ADMINISTER THIS MEASURE.
AND WITH THAT I'D BE HAPPY TO
TAKE IN QUESTION.
ANY QUESTIONS FROM COMMITTEE.
MISTER POPE.
I HAVE A COMMENT.
I SUPPORT THIS.
ON A TABLE.
I'M A BABY BOOMER.
WHEN I'M DONE WITH THIS GIG.
UNLESS I HAVE SOME LIKE THIS ON
THE BOOKS
I'M BROKEN.
ALSO EVERYTHING GET OUT OF.
DODGE
I GET OUT OF CALIFORNIA BECAUSE
I'M PAYING THIRTEEN POINT SIX
PERCENT.
STATE TAX.
OKAY AMBIENT TAXED INTO THE
GROUND.
SO.
IF I CAN.
DON'T SIZE.
THEY KEEP MY PROPERTY TAX.
LEVEL. I MIGHT STICK AROUND.
BUT IF I DON'T GET TO.
ADIOS AMIGO I'LL BE GONE DO YOU.
ALRIGHT.
OR LOS VEGAS LOT OF BABY BOOMERS
ARE GOING LAS VEGAS IS ONE OF
THE. MAIN STATES THAT EVERYONE'S
MOVING TO.
SO. THE POINT I'M MAKING TO THIS
COMMITTEE IS.
CUT.
US. OLD PEOPLE SOME SLACK.
OKAY BECAUSE IT WILL JUST LEAVE.
AND WE HAVE NINETEEN WHAT POINT
NINETEEN POINT SIX MILLION POOR
PEOPLE IN IN THIS STATE.
I WANT TO KEEP SOME OF THE RICH
GUYS HERE.
AND I. AM RICH WOMEN.
OKAY.
BECAUSE THEY CONTROL FIFTY SIX
PERCENT OF THE WEALTH.
SO THAT'S MY POINT THANK YOU
MADAM CHAIR.
MISTER CHIU.
THANK YOU I I TO THE QUESTION
UNDER REDUCE PROPERTY TAX
REVENUE TO LOCAL GOVERNMENT DATA
AGGREGATED AMOUNT.
WHILE CALL OF.
IT'S CORRECT OKAY BECAUSE I CAN
SEE SOME BENEFIT TO. OF. AREA OF
HIGHER CALLS THE REAL ESTATE
MARKET.
THEN AND IF THE THAT GOAL OF
THEIR OLD.
HOUSE.
YOU NO THAT AND DIDN'T NEW
BUYERS AND UP A MUCH HIGHER PROP.
SO FOR THAT COUNTY.
DID IT PROBABLY WILL SEE IT
INCOME.
BUT IF THE DEAD DEAD DEAD DEAD
FIRE MOVE TO ANOTHER COUNTY. AND
CARRIED THAT EXCEPTION WITH THEM.
SO DATA BUYING COUNTY MAY BE
LOSING SOME OF THE PROPERTY TAX.
BUT THE SELLING DID DID DID THE
COUNTY WHERE HE'D SOLD HIS
THIRTY YOUR OWN HOME.
PROBABLY WOULD IN JURY OF MUCH
HIGHER PROPERTY TAX BECAUSE A
NEW BUYER WILL HAVE TO PAY A
MUCH HIGHER PROPERTY TAX.
I THINK THAT'S.
THAT'S CORRECT IN CONCEPT I
THINK THOUGH YOU HAVE TO THINK
ABOUT KIND OF BOTH SIDES OF THE
TRANSACTION THE YOU WERE
MENTIONING THAT.
THIS BUYER WILL SELL THEIR
HOUSE RIGHT AND THAT WILL RESULT
IN AN INCREASE IN THE IN THE
ASSESSMENT FOR THAT HOUSE BUT
THEN THEY'LL BE MOVING TO
ANOTHER HOUSE AND THEY'LL BE
TAKING THEIR ASSESSMENT WITH
THEM AND THAT WILL BE
ESSENTIALLY A A A REDUCTION IN
THE ASSESSED VALUE IN THE.
ASSESSMENT INCREASE THAT WOULD
HAVE OTHERWISE OCCURRED IF
SOMEONE ELSE SAID AND PURCHASE
THAT HOUSE RIGHT BUT I I THINK
YOUR POINT STILL REMAINS THAT TO
THE EXTENT. THAT IF THERE ARE
TWO COUNTIES WHERE YOU HAVE A
SIGNIFICANT FLOW OUT OF ONE
COUNTY INTO ANOTHER COUNTY
THAT YOU COULD HAVE SOME THERE
COULD BE SOME DIFFERENTIAL
ACROSS THOSE COUNTIES IN TERMS
OF HOW THE FISCAL AFFECTS PLAY
OUT.
I THINK WE WERE LOOKING AT THE
DATA WE DIDN'T SEE THAT THERE
WERE A LOT OF INSTANCES WHERE
THERE WERE HUGE IMBALANCES
ACROSS COUNTIES IN TERMS OF
PEOPLE. YOU KNOW A SIGNIFICANT
DISPROPORTION AMOUNT OF PEOPLE
LEAVING ONE COUNTING GOING TO
ANOTHER PARTICULAR COUNTY.
ENOUGH THAT THAT IT YOU KNOW
THAT THOSE FISCAL EFFECTS WOULD
VARY. GREATLY ACROSS COUNTY
LINES.
BUT I I THINK IN IN GENERAL.
THERE.
THERE COULD BE SOME OF THOSE
KIND OF DIFFERENT EFFECTS ACROSS
COUNTIES YOU RIGHT.
NO THANK YOU.
I THOUGHT OF EVERYTHING.
I I THINK I'M TO PIGGYBACK OFF
MY ARMY COLLEAGUE FROM SAN
JOSE'S POINT I MEAN.
I I HAVE THE OPPOSITE CONCERN
THAT YOU HAVE AREAS THAT
CONTINUE TO BE HIGHLY DESIRABLE
IN TERMS OF REAL ESTATE WHICH IS
COASTAL CALIFORNIA. OUT WHEN I
WAS THE COUNTY ASSESSOR SAN
FRANCISCO I GOT NUMEROUS CALLS
ABOUT PEOPLE WANTING TO MOVE
INTO. SAN FRANCISCO THIS THIS
WOULD ALLOW IT IN ESSENCE ON
SENIOR RESEARCHERS ARE VERY
WEALTHY.
COLLEAGUE FROM SANTEE UMP TO BE
ABLE TO COME INTO.
SAN FRANCISCO UNDERCUT THE
COMPETITION WHICH WOULD BE
PEOPLE AT MY AGE I BOUGHT ARE
NOT THAT MUCH YOUNGER THAN
MISTER VOEPEL.
BUT.
THAT PEOPLE ARE AT MY AGE LEVEL
WILL BE AT A DISADVANTAGE HE
COULD ACTUALLY. PAY A HIGHER
PRICE BID A HIGHER PRICE BECAUSE
HE HAD A LOWER TAX BASE. IS SO
ARM DID THIS IS EXTRAORDINARILY
CONCERNING I THINK THIS WOULD BE.
THIS WHICH FURTHER EXACERBATE
HOUSING AFFORDABILITY AND IN THE
COAST COASTAL PART OF CALIFORNIA
I DON'T BELIEVE THAT HE WOULD
INCREASE AT EXETER STORE.
ENCOURAGING NEXT IS I THINK
QUITE THE OPPOSITE IT WOULD MEAN
THAT PEOPLE WHO. AYE IN ESSENCE
COULD. FEEL LIKE THEY COULD
AFFORD COASTAL CALIFORNIA COLSON
MAYBE IT LOOK AT SANTA MONICA OR
LONG BEACH OR. YOU KNOW WEST LA.
IN ALL THIS AND FIND OUT MUCH
MORE ATTRACTIVE BECAUSE.
THEY COULD.
TRANSFER THEIR NINETEEN SEVENTY
FIVE YEAR PROPERTY TAX.
WHICH WOULD MAKE IT MUCH MORE ON
ACCEPTABLE FINANCIAL.
YES THANK YOU COULD YOU JUST UP.
WALK THROUGH.
ONE MORE TIME THE IMPACT ON A
SCHOOL FUNDING THAT'S ONE OF MY
MAIN CONCERNS.
BUT I I THINK WHAT YOU'RE SAYING
HERE IS THAT WE'RE. LIKELY
REDUCE.
THE ABILITY TO FUND SCHOOLS ON
THE LOCAL LEVEL IN THE
EXPECTATION WOULD BE THAT THE
STATE WOULD BACK FILL. THOSE
DOLLARS STARTING AT A HUNDRED
MILLION AND THEN WRAPPING UP TO.
A BILLION AND THEN PROBABLY MORE.
LONGER TERM YES SO THAT'S TRUE
IN IN GENERAL SO IN GENERAL A
STATE LAW CURRENTLY DICTATES
THAT EACH SCHOOL RECEIVED A
CERTAIN MINIMUM LEVEL FUNDING.
THROUGH A COMBINATION OF STATE
FUNDING AND LOCAL PROPERTY TAXES.
SO IT FOR MOST SCHOOLS OF THEIR
PROPERTY TAXES GO DOWN AS A
RESULT OF THIS MEASURE THEY WILL
BE ESSENTIALLY.
MADE WHOLE WITH ADDITIONAL
STATE GENERAL FUND NOW A COUNTY
OUT TO THAT IS THERE ARE.
ABOUT FIVE PERCENT OF SCHOOLS
THAT RECEIVE.
ENOUGH PROPERTY TAXES THAT IS
THAT ACTUALLY THE BASIC EIGHT
SCHOOLS THAT EXCEEDS THEIR
MINIMUM GUARANTEE AND SO THEY
DON'T RECEIVE ANY STATE FUNDING
AT ALL OR THEY RECEIVE. A
MINIMUM AMOUNT OF STATE FUNDING
AND SO.
PROPER TALKS LOSSES FOR THOSE
SCHOOLS WOULD BE WOULD HAVE A
THOSE SCHOOLS WITHOUT ANY
ADDITIONAL STATE FUNDING.
SO SO TWO POINTS AND YOU WHEN
YOU SAY MADE WHOLE MONEY STILL
GOT TO COME FROM SOMEWHERE.
SAMI'S YOU'RE NOT TAKING OUT A
LOCAL BUDGET YOUR THEN DIPPING
INTO THE STATE BUDGET AND THAT
WOULD GIVE SHRINK. POTENTIALLY
SHRINK THE DOLLARS AVAILABLE FOR
OTHER SERVICES.
WITH WITH THIS ULTIMATELY IN
THE LONG TERM.
SHOULD A SHRINK THE NUMBER OF
BASIC EIGHT DISTRICTS.
IT.
IT POTENTIALLY COULD.
.
IT'S SIMPLE TO SAY IT'S NOT
SOMETHING WE LOOKED AT IN DETAIL.
BUT THE I THINK IF THERE WERE
DISTRICTS THAT WERE.
ON THAT KIND OF ON THE MARGIN
OF BEING BASIC AID THAT THAT THE
EFFECT OF THIS MEASURE IN THE
LONG TERM COULD POTENTIALLY PUSH
THEM BACK TO BEING.
.
NOT NOT BASIC INTO HIS I THINK
SOME DISTRICTS GO BASIC GAVE
THEM COME OUT THEY GO BACK AND.
SO I THINK THIS IS MADE MAYBE
GET A FORCE FAR OUT.
OF BEING BASICALLY A DISTRICTS
AGAIN I JUST WANT TO MAKE THE
POINT OF THE MONEY HAS TO COME
FROM SOMEWHERE.
OUR SCHOOLS ARE ALREADY IN A
RADICALLY UNDER FUNDED IN THE
STATE OF CALIFORNIA. AND THEN
WE'RE GONNA PUT GREATER BURDEN
ON THE STATE FROM THE LOCALS
IT'S NOT IT'S NOT JUST FREE
MONEY IT'S GOING TO IT'S GOING
TO MEAN LESS DOLLARS FOR OTHER
SERVICES AND MAYBE EVEN
ULTIMATELY SCHOOLS THEMSELVES OF
THANK YOU.
THANK YOU MADAM CHAIR I'M.
KIND OF GRAPPLING WITH WHAT
EXACTLY THE IMPACT ON TAX
REVENUES WOULD BE BECAUSE I KNOW.
THAT YOU SAID IN THE SHORT TERM
WE CAN CALCULATE WHAT THOSE
WOULD BE BECAUSE WE CAN ESTIMATE
HOW MUCH TAX BASIS. PEOPLE IN
THE OVER FIFTY FIVE CATEGORY
HAVE IN THEIR HOMES WE CAN MAKE
ASSUMPTIONS ABOUT WHAT
PERCENTAGE OF THEM WOULD MOVE.
AS WE GOT HONORED FIFTY MILLION
DOLLARS IN THE SHORT TERM
GROWING TO POTENTIALLY A BILLION
DOLLARS IN THE LONG TERM
ANNUALLY RIGHT.
SO.
BUT THEN WE'VE GOT THESE ARE
THE THINGS THAT WILL INCREASE
TAX REVENUE FOR EXAMPLE SO. THAT
PEOPLE WHO. WOULD NOT HAVE MOVED
UNDER CURRENT LAW COULD MAKE THE
DECISION TO MOVE.
THEY MAY SEE A DECREASE IN
PROPERTY TAX BUT THEY'LL HAVE
CAPITAL GAINS TAX ON. THE.
THE SALE OF THE HOME ALSO
THEY'LL BE DOCUMENT TRANSFER
TAXES ASSESSED.
AND THEN THERE'S THE MARKET. OF
GREATER COMPETITION FOR HOMES
WHICH DRIVES HIGHER PRICES.
WHICH LEADS TO HIGHER PROPERTY
TAX VALUATIONS FOR PEOPLE EVEN
OUTSIDE OF THE OVER FIFTY FIVE
CATEGORY SO YOU PUT ALL THAT
TOGETHER AND.
I MEAN I'M I'M I'M I'M AT A LOSS
TO YOU KNOW WAS WEARING WHERE
THAT NETS OUT.
BECAUSE YOU KNOW THE ONLY
CONCRETE NUMBERS WE HAD ON THE
REVENUE LOSS SIDE WE DON'T HAVE
ANY CONCRETE NUMBERS ON THE
REVENUE GAINS SIDE. SO BRING CAN
YOU SHED SOME LIGHT ON ENERGY
WHICH WE JUST HAVE TO CONCLUDE
WE DON'T KNOW.
SURE LET ME.
LET ME SPEAKS TO THOSE
AFFECTION MENTION LET ME START
WITH THE THE KIND OF BROUGHT
HOME PRICE APPRECIATION. A POINT
WHICH.
AYE SO AS I MENTIONED EARLIER
THERE IS SOME RESEARCH THAT
SUGGESTS THAT WHEN HOMEOWNERS
RECEIVE PROPERTY TAX SAVINGS IT
DOES.
KIND OF THE TERM OF ART IS IT
GETS CAPITALIZED INTO HOME
PRICES THAT HAD KINDA IT
INCREASES THE WILLINGNESS TO PAY
FOR HOMES. ON THAT SHOWS UP IN
IN HIGHER HOME PRICES AND SO.
OTHER HAS BEEN SOME PAST
RESEARCH THAT SUGGESTS THAT EACH
DOLLAR OF PROPERTY TAX SAVINGS
THERE IS.
.
THERE IS AN OFFSETTING.
PROPERTY VALUE PER SHE ASIAN
THAT RESULTS IN SOMEWHERE AROUND.
SEVEN CENTS OF ADDITIONAL
PROPERTY TAX REVENUE SO THERE'S
SOME OFFSETTING EFFECT BUT IT'S
RELATIVELY MINOR IN TERMS OF THE.
RESULT PROPERTY TAX SAVINGS.
ON THE POINT OF PROPERTY TAX.
TRANSFER AND CAPITAL GAINS.
BOTH OF THOSE EFFECTS.
DRIVE OFF OF ANY ADDITIONAL
HOME SALES THAT MAKER THAT
SOMEONE MAY BE ENCOURAGED
BY THE PASSES OF JUSTIN OF THIS
MEASURE THEY WOULD NOT HAVE SOLD
THEIR HOME AND MOVE SOMEWHERE
ELSE OTHERWISE BUT. NOW THAT
THEY'RE RECEIVING THIS TAX
BENEFIT THEY MAY DO SO.
AND SO THE MAGNITUDE OF THOSE
AFFECTS DOES DEPEND ON JUST HOW
MANY OF THOSE PEOPLE WOULD BE
ENCOURAGED TO MOVE.
OUR ESTIMATE IN THE AT THE
TITLE AND SUMMARY STAGES THAT
EACH OF THOSE BOTH THAT THE
PROPERTY TRANSFER REVENUES AND
THE CAPITAL GAINS. COULD
INCREASE BY.
IN THE TO SEE INCREASES IN THE
TENS OF MILLIONS.
AND THAT'S BASED ON.
BOTH SOME OF STATISTICAL
MODELING THAT OUR OFFICE IS DONE.
AND ALSO PASSED ACADEMIC
RESEARCH THAT WE WERE
ESSENTIALLY.
MIRRORING OTHERS ATTEMPTED TO
ESTIMATE THE KIND OF THE
BEHAVIORAL FACTS
OF HOW MUCH PEOPLE RESPONDED TO
THE AND AN INCENTIVE CREATED BY
THE THAT THE SPECIAL RULES THAT
ARE THERE IN PLACE NOW FOR
PEOPLE WHO ARE MOVING. PEOPLE
OVER FIFTY FIVE REMOVING TO HOME
OF EQUAL OR LESSER VALUE. THERE
HAS BEEN SOME PAST RESEARCH BY
OUR OFFICE AND OTHER ACADEMICS
IT IS TRIED TO MEASURE. JUST HOW
MUCH IS THAT HOW BIG IS THAT
BEHAVIORAL FACT.
I WE SAID THAT MAYBE OUR
ESTIMATE WAS MAYBE IT COULD BE A
FEW. A FEW TENS OF THOUSANDS OF
AN INCREASE AND.
ADDITIONAL MOVES BUT YOU HAVE
TO WEIGH THAT AGAINST.
THE FACT THAT THERE'S SOMEWHERE
AROUND EIGHTY THOUSAND TWO
HUNDRED THOUSAND OVER FIFTY FIVE
HOME BUYERS NOW WE'RE MOVING.
AND NOT RECEIVING ANY TAX BREAK
AT ALL SO WE THINK THAT THE THAT
THE FOLKS WHO WOULD.
ESSENTIALLY WHO ARE MOVING NOW
NOT IN RESPONSE TO THIS MEASURE
BUT WOULD BE GETTING A TAX
BENEFIT ANYWAY.
THAT THAT AFFECTS.
IS ENOUGH TO.
KIND OF A.
MORE THAN COVER ANY OF THOSE
OTHER ADDITIONAL OR REVENUE
GAINS FROM THE THE OTHER PIECES
MATHIS ON LET ME SUMMARIZE WHAT
I HEARD YOU SAY SO REALLY WORK
WE'RE GUESSING ON BOTH SIDES OF
THE LEDGER RIGHT. WE'RE GUESSING
THE NUMBER OF PEOPLE WHO. I
WOULD CHOOSE TO MOVE UNDER THE
NEW PROPOSED LAW THAT WOULD
WOULD NOT CHOOSE TO MOVE
OTHERWISE AND THEN WE'RE
GUESSING OUT. LA ON THE POSITIVE
SIDE THE LEDGER WHAT WHAT
EFFECTS THAT THAT WOULD HAVE ON
OUR. PART TAX REVENUES FROM
CAPITAL GAINS TAX AND AND
PROPERTY APPRECIATION SO BOB BUT.
WHEN WE TOTAL ALL THE GUESSES
YOU THINK IT'S NOT A NET REVENUE
LOSS TO LOCAL GOVERNMENT.
YEAH I MEAN I THINK THAT ANY ANY
EXERCISE OF DOING A FISCAL
CEMENT INVOLVES.
I SUPPOSE YOU COULD SAY GUESSING
OR MAKING.
TO ATTEMPTS TO MAKE EDUCATED US
DEMANDS OF THE VARIOUS MOVING
PIECES I THINK. ONE THING THAT I
WOULD SAY THOUGH IS THAT OF THE
VARIOUS SORT OF ESTIMATES THERE
WERE HAVING TO DO I THINK THAT
THE ONE.
.
THAT IS BOTH THE BIGGEST AND
PROBABLY THE CLEAREST AND
EASIEST ESTIMATE IS THE THE
PIECE OF THE PEOPLE WHO ARE
ALREADY MOVING NOW UNDER CURRENT
LAW.
WHO ARE RECEIVING A TAX BENEFIT
AND WILL IF THE MEASURE PASSES
SO THAT ONE IT IN IN MY MIND
PROBABLY INVOLVE THE LEAST
AMOUNT OF ASSUMPTIONS OUR
ESTIMATION THAT HOUSE TO GO INTO
IT? THE OTHER PIECES I MEAN SURE
I I DON'T THINK. WE OR ANYONE
ELSE CAN ESTIMATE WITH EXACT
PRECISION HOW MANY ADDITIONAL
PEOPLE ARE GONNA MOVE UNDER THIS
MEASURE I THINK WE DID WE DID
WHAT I FEEL LIKE IS.
ARE DUE DILIGENCE IN ATTEMPTING
TO.
DO.
YOU KNOW SOME WORKED ESTIMATE
THAT AND LOOK AT PAST ACADEMIC
RESEARCH BUT. YOU'RE RIGHT
NOBODY NOBODY KNOWS FOR SURE.
EXACTLY WHAT WILL HAPPEN WHILE
YOU'RE A EVEN THOUGH WE'RE
GUESSING YOU'VE CONVINCED ME
THAT IT'S AN EDUCATED GUESS.
THANK YOU.
SITTING.
I THINK IT'S A JUST A FALL FROM
MY COLLEAGUE FROM PAPER SO IF IF
I HEARD YOU. CORRECTLY YOU HAVE.
A CERTAIN GROUP OF PEOPLE
ALREADY FIFTY FIVE AND OLDER WHO
ARE MOVING. ANYWAYS REGARDLESS
OF THIS
TAX BREAK OR NOT AND AND FROM
WHAT I HEARD YOU SAY YOU'RE
GIVING THEM A TAX BREAK THAT
THEY HAVEN'T ASKED FOR NOR NEED
TO.
TO MOVE BECAUSE ALREADY MOVING
ANYWAYS SO YOU KNOW BASED ON
THAT HOW BIG A BREAK THAT THE
BEGINNING FOR BEHAVIOR THAT
THEY'RE READY EXHIBIT.
THAT THAT'S RIGHT I MEAN I THINK
THAT.
THAT THAT IS WHAT MAKES UP MOST
OF THE. THE NUMBERS YOU'RE
SEEING HERE IS ESSENTIALLY THAT
TAX BENEFIT THAT'S BEING
PROVIDED TO THE PEOPLE WHO ARE
MOVING ALREADY. AND WE DO HAVE
IT SAMPLE IN LAW NOW OF COUNTIES
THAT CAN DO THIS SO WE DO HAVE A
GUESSTIMATE OF HOW MANY PEOPLE
DO UTILIZE IT. THINK YOU ANY
OTHER QUESTIONS OR COMMENTS FROM
THE COMMITTEE UP.
I JUST WANT TO ASK ONE QUESTION.
BECAUSE I'M OBVIOUSLY IN TO THE
MEETINGS AND SUPPOSED BE AND
RIGHT NOW I'M GETTING MESSAGES.
WHY WOULD WE DO THIS?
I I'M TRYING TO FIGURE OUT WHAT
THE PROBLEM IS AND AND AND
BECAUSE. I MEAN WE WE HAVE
PROBLEMS WHO ATTACKS IN MOON GOT
PROP THIRTEEN INSTEAD OF DOING
ONE THING HIT THE WHOLE PROBLEM
HAMMER WHO STILL HAVE PROBLEMS
WITH IT.
WHAT'S THE PROBLEM WITH TRYING
TO SOLVE.
THAT'S RIGHT I MEAN I UNDERSTAND
WHAT WHY HOW IT OPERATES.
I'M JUST TRYING TO FIGURE OUT
WHAT WHAT PROBLEM ARE WE
ACTUALLY TRYING TO SOLVE. ED
THAT'S GOING TO CREATE ALL THESE
OTHER PROBLEMS THAT I SEE JUST
JUST QUICKLY THIS IS NOT A
PROPONENT THIS IS THE LA ALSO
JUST SO YEAH AREAS AND OFF AREAS.
WHAT HE WAS DOING THE RESEARCH
SHOWS I'M TRYING TO FIGURE WILL
PROBABLY THEY GIVE TO YOU TO TRY
TO SOLVE?
SO AS I MENTIONED IN KIND OF MY
OPEN MY OPENING COMMENTS.
OUR OFFICE AS A BIT OF A.
A DIFFERENT ROLE THAN OUR
TRADITIONAL ROLE IN DEVISING IN
THE BUDGET OF THE POLICY THAT
CAPACITY IN THIS ROLE THE VOTERS
HAVE PASSED US WITH BEING
IMPARTIAL OBJECTIVE AND FOCUSING
SOLELY ON THE FISCAL AWESOME AND
SO ALL THAT IS TO SAY.
I THINK IT PRIOR TO DEFER YOUR
QUESTION TO THE PROPONENTS AND
OPPONENTS WHEN THEY COME OUT
KIND OF DISCUSS.
WHAT THEY SEE IS THE PROBLEM
THAT THEY'RE THEY'RE TRYING TO
SOLVE THIS BUDGET IS SOON AS AS
SOON AS WE? TAKE A SELLER
MELENDEZ QUESTION WILL BRING THE
PROPONENTS OF SO WE CAN SILICON
ASSET FOR YOU.
SO MEMORABLE AND. THANK YOU AM I
HAVE A QUESTION. DO YOU.
DO YOU THINK THAT THIS
POLICY CHANGE.
WOULD HAVE A NEGATIVE OR
POSITIVE IMPACT ON THE HOUSING
SHORTAGE THAT WE ARE
EXPERIENCING IN CALIFORNIA.
BUT.
SO I THINK THAT THERE IS SOME
POTENTIAL THAT ARE GOING BACK TO
THE POINT THAT I WAS MAKING
BEFORE THAT A WIN. HOMEOWNERS
RECEIVE PROBABLY TAX SAVINGS.
THEY THAT CAN ULTIMATELY RESULT
IN SOME INCREASE AND HOME PRICES
DOWN THE LINE AND DESCRIBE THAT
MECHANISM FEW TIME. THAT.
INCREASE IN HOME PRICES.
ESPECIALLY MAYBE IN CERTAIN
COUNTIES THAT ARE.
.
TOP DESTINATIONS FOR THESE
RETIREES.
MAY ENCOURAGE SOME DEVELOPERS
TO BUILD ADDITIONAL HOUSING.
.
WHEN WE LOOK TO THAT EFFECT WE
THINK THAT PROBABLY THAT WOULD
BE RELATIVELY SMALL.
COMPARED TO THE SCALE OF
OVERALL DEVELOPMENT IN THE STATE.
.
INCREASING IN YOU KNOW BY YOU
KNOW OUR BEST GUESS WAS PROBABLY
LESS THAN A PERCENT A YEAR.
SO.
IT MAY BE THERE COULD BE SOME
MODEST INCREASE IN CONSTRUCTION.
BUT YOU KNOW MAYBE PROBABLY NOT
SIGNIFICANT.
THANK YOU
MR BLUE.
XIN OKAY.
RIGHT ANYMORE COMMENTS OR
QUESTIONS OF THE COMMITTEE.
SEEING NONE THANK YOU SO MUCH
MISTER BOYER I PROPONENTS COMING
M. CRIST'S.
CHRISTOPHER CARLISLE AND MISTER
BILL HIM PLEASE.
CHRIS FOR CARLISLE CALIFORNIA
ASSOCIATION REALTORS THANK YOU
FOR THIS OPPORTUNITY TO SPEAK
WITH YOU TODAY.
AS YOU KNOW CALIFORNIA HAS A
HOUSING SUPPLY PROBLEM.
WE BELIEVE A PARTIAL SOLUTION
ONE THAT WOULD ENCOURAGE MORE
EFFICIENT USE OF OUR EXISTING
HOUSING STOCK.
IS THE PROPERTY TAX FAIRNESS
INITIATIVE SPONSORED BY THE TWO
HUNDRED THOUSAND MEMBER
CALIFORNIA ASSOCIATION OF
REALTORS.
THERE ARE MANY BABY BOOMERS WHO
WOULD LIKE TO MOVE FROM THEIR
LARGE VAMPED SINGLE FAMILY HOME.
NOW THAT THEIR CHILDREN HAVE
MOVED OUT.
THERE HOMES NO LONGER MEET THEIR
NEEDS AND THERE'S INTEREST IN
DOWNSIZING OR MOVING CLOSER TO
CHILDREN OR GRANDCHILDREN.
MANY WHO WANT TO MOVE FEEL
LOCKED IN PLACE SINCE THEY KNOW
THAT THEY FACE A SIZEABLE
INCREASE IN THEIR PROPERTY TAXES
IF THEY MOVED TO A NEW HOME.
PERHAPS DOUBLE OR TRIPLE. THE
CURRENT TAX BILL.
THEY ARE KEPT FROM MOVING TO A
MORE SUITABLE DWELLING BECAUSE
OF THE SUBSTANTIAL MOVING
PENALTY THEY FACE.
ALMOST SEVENTY FIVE PERCENT OF
ALL SENIOR HOMEOWNERS HAVE NOT
MOVED IN THE CENTURY ANOTHER
WHICH THEY HAVEN'T MOVED SINCE
THE YEAR TWO THOUSAND. AND
ALMOST HALF HAVE BEEN IN THEIR
HOMES FOR A QUARTER OF A CENTURY.
NOW WE HAVE PROPOSITION THIRTEEN
WHICH SETS A HOMEOWNER'S
PROPERTY TAXES THAT ONE PERCENT
OF THE PURCHASE PRICE.
IF A HOMEOWNER MOVES THEIR TAXES
ARE BASED ON THE PURCHASE PRICE
OF THE NEW HOPE. SO EVEN IF THEY
MOVE TO HOME OF EQUAL VALUE
THEIR PROPERTY TAXES WILL GO UP.
NOW PROP SIXTY ALLOWS TRANSFERS
FOR SENIOR HOMEOWNERS WITHIN A
COUNTY BUT THE HOME MUST BE OF
EQUAL OR LESSER VALUE. AND PROP
NINETY ALLOWS TRANSFERS TO OTHER
COUNTIES BUT ONLY ELEVEN
COUNTIES HAVE AGREED TO ACCEPT
SOME TRANCERS.
AND ONLY A SINGLE TRANSFER IS
ALLOWED.
THAT'S WHY WE HAVE SPONSORED THE
PROPERTY TAX FAIRNESS INITIATIVE.
WENT PASSED IT WILL ELIMINATE
THE MOVING PELLETS FOR SENIORS
THOSE FIFTY FIVE AND OLDER WHO
WISH TO MOVE TO SAFER. MORE
PRACTICAL HOMES OR HOMES CLOSER
TO FAMILY MEMBERS.
THE FINN IF IT'S ALSO APPLY TO
PEOPLE WHO ARE DISABLED WHO HAVE
LOST THEIR HOME DUE TO A NATURAL
DISASTER.
THE INITIATIVE PROVIDES FOR
ELIGIBLE HOMEOWNERS THAT THEIR
CURRENT PROPERTY TAX BASE WILL
BE TRANSFERRED.
ONE WHEN THEY PURCHASE ANOTHER
HOME IT ANY OF CALIFORNIA'S
FIFTY EIGHT COUNTIES.
TWO REGARDLESS OF HOW MANY TIMES
THEY MOVE AND THREE REGARDLESS
OF THE PURCHASE PRICE OF THE
REPLACEMENT HOME.
IF A HOME IF A HOMEOWNER IS HAS
TO PURCHASE A MORE EXPENSIVE
HOME. WHICH CAN OFTEN HAPPEN
WHEN DOWNSIZING THEY WILL HAVE
TO PAY PROPERTY TAXES ON THE
DIFFERENCE BETWEEN THE SALES
PRICE OF THEIR ORIGINAL
RESIDENTS.
AND THE PURCHASE PRICE OF THE
REPLACEMENT RESIDENTS.
THEY GET TO KEEP THEIR PROP
THIRTEEN SAVINGS.
AND SO WHAT WE DO IS WE COMBINED
THOSE TIPS LET ME GIVE AN
EXAMPLE. LET'S SAY YOU BOUGHT AT
A HUNDRED THOUSAND NOW TWENTY
YEARS LATER YOU'RE SELLING A TWO
HUNDRED FIFTY THOUSAND. AND YOU
BY UP TO THREE HUNDRED TWENTY
FIVE THOUSAND.
THAT'S SEVENTY FIVE THOUSAND
DOLLAR DIFFERENCE BETWEEN THE
TWO FIFTY AND THE THREE TWENTY
FIVE WILL BE ADDED TO THE
ORIGINAL ONE HUNDRED THOUSAND
DOLLAR TAX BASE.
SO NOW YOU HAVE A HUNDRED
SEVENTY FIVE THOUSAND DOLLAR TAX
BASE. FOUR HUNDRED THREE HUNDRED
THREE HUNDRED TWENTY FIVE
THOUSAND DOLLAR HOME WHAT I WANT
YOU TO NOTICE IS. THAT THOSE
TAXES OR THE SAME EXACTLY THE
SAME AS IF THE HOMEOWNER HAVE
PURCHASED A HOME OF EQUAL VALUE.
THIS.
WAY THAT WE'RE CALCULATING THAT
NEW A PROPERTY TAX BASE ASSURES
THAT THE HOMEOWNER WILL STILL
PAY FOR HIS OR HER FOR HIS OR
HER FAIR SHARE A PROPERTY TAXES.
BUT THEY WILL BE PROTECTED FROM
LARGE INCREASES IN THEIR TAX
BILL.
NO AS I MENTION THESE BENEFITS
WOULD APPLY TO THE SEVERELY
DISABLED AND TO THOSE WHO LOST
THEIR HOME IN A DISASTER SUCH AS
THE TIMES FIRE LAST OCTOBER IN
NAPA SO NO MY AND LAKE COUNTIES.
OR THE THOMAS FIRE THAT
DESTROYED PARTS OF THE TOUR AND
SANTA BARBARA COUNTIES LAST
DECEMBER JANUARY.
IT WOULD ALLOW VICTIMS WHO LIVE
IN AREAS LIKE THESE. THAT HAVE
BEEN OFFICIALLY DECLARED
DISASTER BY THE GOVERNOR TO MOVE
ANYWHERE IN THE STATE WITHOUT
PAYING THE MOVING PENALTY.
BECAUSE OF THE HIGH COST OF
HOUSING TOO MANY WOULD BE HOME
BUYERS FEEL THEY WILL NEVER BE
ABLE TO PURCHASE A HOME.
THIS MEASURE IS NOT ONLY ABOUT
TAX FAIRNESS FOR SENIORS BUT
ALSO ABOUT CREATING
OPPORTUNITIES FOR HOMEOWNERSHIP
BY INCREASING THE AVAILABILITY
OF SINGLE FAMILY HOMES. IN
ESTABLISHED NEIGHBORHOODS.
THIS INITIATIVE INCREASES THE
ABILITY OF YOUNG FAMILIES TO BUY
HOMES.
THUS STRENGTHENING NEIGHBORHOODS
AND AREA SCHOOLS THAT MAY BE
FACING DECLINING ENROLLMENT.
NOW THERE'S LITTLE UARREL ABOUT
ALLOWING SENIORS THE DISABLED
AND OTHERS TO MOVE ELSEWHERE IN
THE STATE WHEN THEY NEED TO DO
SO. THE ONLY ISSUE IS THE LA
OWES ESTIMATED COST OF THIS
PROPOSAL.
TO THAT END THE CALIFORNIA
ASSOCIATION OF REALTORS HAS
SECURED THE SERVICES OF THE
BERKELEY RESEARCH GROUP WHICH IS
COMPOSED OF FORMER. DIRECTOR OF
FINANCE SENATOR TOM CAMPBELL AND
DOCTOR BILL HIM.
DR HAVE IS HERE TODAY TO DISCUSS
HOW WE DYNAMIC FISCAL ANALYSIS
OF THE INITIATIVE REVEALS THAT
THE INITIATIVE WILL NOT COST
WHAT IS BEEN PREDICTED TO COST.
DOCTOR HIM.
WELCOME DOCTOR HIM. THANK YOU.
YEAH.
HAD CHAIRS AND MEMBERS. GOOD
AFTERNOON.
THANKS FOR HAVING ME.
.
I AM NOT AN ADVOCATE OR AN
OPPONENT OF THIS MEASURE I WAS
RETAINED BY THE REALTORS TO DO
AN OBJECTIVE AND INDEPENDENT
FISCAL ASSESSMENT OF THE MEASURE.
ALONG WITH TOM CAMPBELL.
AND AS MR YOU'LL ARE PROPERLY
POINTED OUT THIS MEASURE WILL
HAVE BOTH POSITIVE AND NEGATIVE
EFFECTS ON STATE AND LOCAL
GOVERNMENT FINANCES.
AFTER REVIEWING THE EVIDENCE
ANALYZING THE MEASURE.
DOCTOR CAMPBELL AND I ARE OF
THE OPINION THAT ON A NET BASIS
THIS MEASURE OF ITS ENACTED AND
IMPLEMENTED.
WILL COME PRETTY CLOSE TO PAYING
FOR ITSELF THAT THE ADDITIONAL
REVENUES IT GENERATES.
WILL. A COME CLOSE TO OFFSETTING
REVENUE LOSSES THAT WE CERTAINLY
ALL AGREE ARE BUILT INTO THIS
MEASURE.
THE NATIONAL REVENUES ARE GOING
TO COME FROM TWO SOURCES ONE OF
WHICH I THINK IT'S BEEN
DISCUSSED AT THIS HEARING THE
OTHER HAS NOT BEEN.
THE FIRST IS THAT. THE MEASURE
WILL CERTAINLY ENCOURAGE MORE
HOMEOWNERS AGE FIFTY FIVE AND
OLDER.
TO SELL THEIR CURRENT RESIDENCES
AND BUY MORE SUITABLE RESIDENCES.
MORE SUITABLE TO THEIR STAGE OF
LIFE.
THEIR FAMILY SIZE HERE NEED
TO BE CLOSE TO JOBS AND THINGS
LIKE THAT.
ANOTHER REASON IT WILL ENCOURAGE
MORE SALES IS. BECAUSE IT WILL
ALLOW HOMEOWNERS TO TAKE THEIR
CURRENT ASSESSED VALUE WITH THEM
TO THEIR NEW HOME.
AND AS THEY MOVE OUT.
THAT WILL FREE UP SPACE.
A LOT OF SQUARE FOOTAGE ACTUALLY
FOR GROWING FAMILIES WHO WILL IN
TURN SELL THEIR HOMES AND.
UPGRADE TO.
SPACE IT'S MORE. APPROPRIATE
FOR THEIR NEEDS.
NOW THE ADDITIONAL HOME SALES
WILL GENERATE CAPITAL GAINS BOTH
BOTH SETS OF SELLERS WILL
GENERATE CAPITAL GAINS.
A PORTION OF WHICH WILL BE TAX
AND INCREASED STATE REVENUES.
BUT IN ADDITION THOSE
TRANSACTIONS BOTH THE. THE H.
FIFTY FIVE AND OLDER AND THE
YOUNGER FAMILY MOVING UP.
WILL GENERATE ADDITIONAL
REVENUES IN THE FORM OF TRANSFER
TAX.
AND ALSO GENERATE INCREASED
INCOME FOR PRETTY MUCH EVERYBODY
WHO'S INVOLVED IN THE REAL
ESTATE MARKET.
REALTORS OF COURSE BUT ALSO
TITLE COMPANIES MOVERS.
HOME INSPECTION SERVICES.
HOME REMODELING.
FIRMS
ALL OF ALL OF THEM WILL HAVE
MORE BUSINESS WILL REPORT MORE
INCOME ON THEIR STATE INCOME TAX.
OF FORMS AND PAY MORE INCOME
TAXES TO THE STATE.
AND THE ADDITIONAL INCOME WILL
ALSO FIND ITS WAY INTO TAXABLE
PURCHASES WHICH WILL GENERATE
ADDITIONAL SALES AND USE TAXES.
I SAID TWO FACTORS WILL GENERATE
REVENUES IN ONE OF THEM HASN'T
BEEN I DON'T THINK ADEQUATELY
DISCUSSED IN AND THAT'S WHAT I
WANT TO TURN TO RIGHT NOW.
THE DOCTOR CAMPBELL AND I ARE
CONVINCED THAT THE INCREASE IN
DEMAND FOR SENIOR FRIENDLY
HOUSING.
NOT RESULTING FROM THIS
INITIATIVE WILL SPUR SIGNIFICANT
NEW CONSTRUCTION OF SUCH HOUSING.
LOG IN RESPONSE TO THAT
INCREASED DEMAND.
OF THE INCREASE IN HOME BUILDING
WILL. NOT PUT MORE PROPERTY ON
THE PROPERTY TAX ROLLS AS. A
BUILDINGS ARE PUT IN PLACE ON
WHAT IS NOW TAXED AS WERE ALL
LAND.
OKAY IN ADDITION. TO THE HOME
CONSTRUCTION PROCESS WILL
GENERATE MORE INCOME FOR
CONSTRUCTION WORKERS.
FOR BUILDERS TO CREATE MORE
JOBS THAT WILL INCREASE TAXABLE
INCOME AND ALSO TAXABLE SPENDING.
IT WILL STIMULATE ADDITIONAL
PURCHASES OF GOODS AND SERVICES
THAT ARE NEEDED TO EQUIP NEW
HOMES.
AND.
THAT TOO WILL GENERATE
ADDITIONAL SALES AND USE TAXES
ARE REALLY. ALL OF THE PRINCIPAL
SOURCES OF REVENUE TO THE STATE
AND THE LOCAL GOVERNMENTS WILL
BENEFIT.
FROM THIS INITIATIVE.
IN OUR OPINION THE ADDITIONAL
REVENUES WILL OFFSET A
SIGNIFICANT PORTION IF NOT ALL
OF THE REVENUE LOSS RESULTING
FROM EXTENDING THE BENEFITS OF
PROPOSITION SIXTY.
TWO ADDITIONAL SENIORS.
IN FACT IF HOME BUILDERS. ARE.
SUFFICIENTLY RESPONSIVE. TO THE
INCREASED DEMAND FOR SENIOR
FRIENDLY HOUSING AND HOME
BUILDERS THAT THAT'S WHAT THEY
DO THEY BUILD HOMES.
IF THEY'RE SUFFICIENTLY
RESPONSIVE.
IT IS LIKELY THAT THIS MEASURE
WILL PAY FOR ITSELF.
NOW THERE'S ONE MORE FACT TO
CONSIDERAND.
LOOKING AT THE FISCAL THE FACT
OF THE INITIATIVE.
AND THAT'S THE REAL WORLD
EXPERIENCE OF THE COUNTIES UNDER
PROPOSITION NINETY.
IS MR YOU'LL ARE EXPLAINED
COUNTIES HAVE THE CHOICE UNDER
PROPOSITION NINETY.
TO ALLOW. CERTAIN INTER COUNTY
MOVERS TO BRING THEIR OLD ASSESS
VALUE WITH THEM TO THEIR NEW
HOME.
NOW IF THE TRANSFERS WERE
SIGNIFICANT MONEY LOSERS WE
WOULD NOT EXPECT THE COUNTIES TO
AGREE THAT THIS.
YET THE STATE'S SEVEN LARGEST
COUNTIES AND PROBABLY THE MOST
FINANCIALLY SOPHISTICATED
COUNTIES.
OKAY INTEND YOU TO ALLOW ENTRY
INTO COUNTY MOVERS TO BRING
THEIR OLD NAVY WITH THEM TO
THEIR NEW HOME.
AND SOME OF THEM MOST OF THEM
HAVE BEEN DOING SO FOR THIRTY
YEARS.
WE THINK THIS IS CONSISTENT WITH
OUR OPINION THAT THE SPUR TO NEW
HOME CONSTRUCTION.
COMING FROM THE INITIATIVE WILL
GENERATE DOES.
YEAH A SIGNIFICANT AMOUNT OF
REVENUE THAT WILL HELP HELP LOSS
AT THOSE COST AND PERHAPS NOT
COVER ALL OF THEM. I AM MORE
THAN HAPPY TO ANSWER ANY
QUESTIONS THAT YOU HAVE.
MISTER KARIM.
THANK YOU I HAVE A FEW QUESTIONS
ON THE TIME ASSUMPTIONS THAT YOU
MAKE CARE I GUESS IF IF YOU LOOK
AT THESE TO THE PROPONENTS
ARGUMENT AND THE OPPOSITION I
THINK MOST OF US.
ARE ON THE SAME SIDE WHAT TO
ADDRESS THAT HOUSING CRISIS IN
THE HOUSING SHORTAGE IN THE
SUPPLY ISSUE AS WELL AS.
CONTINUE TO RECEIVE. ADEQUATE
MONIES FOR OUR.
LOCAL GOVERNMENTS AND
SPECIFICALLY OUR SCHOOLS AND SO
THAT THE CRUX OF THE DEBATE HERE
IS. THE DON.
THE DIFFERING OPINION YOU HAVE
THAT ARE ALEJO. ITS IS ONE IF
YOU COULD WALK THROUGH HOW YOU
GET THERE A BIT MORE SO
ESSENTIALLY IF I BOIL IT DOWN.
THERE THEIR ARGUMENT IT'S
THAT YOU DON'T SEE IS THEY TALK
ABOUT THE WINDFALL THAT THAT THE
MAJORITY OF THESE.
INDIVIDUALS WOULD BE DOING THIS
ANYWAY OKAY YEAH THIS THERE'S NO
DISAGREEMENT ON THAT POINT AND
THE THE REAL ISSUE FROM A FISCAL.
EFFECTS STANDPOINT IS. WILLIE
ADDITIONAL REVENUE THAT THE
MANAGER GENERATES BE SUFFICIENT.
TO OFFSET THAT BUILT IN LOSS
THAT YOU JUST DESCRIBED.
THERE. ANYTIME YOU GIVE SOMEONE
A BENEFIT.
THAT THEY DID NOT REQUIRE IN
ORDER TO ACTED NO WAY THEY DID.
IT'S IT'S GOING TO HAVE THE
EFFECT OF REDUCING PROPERTY TAX
REVENUES.
BUT THAT IN ITSELF IS NO DEBATE
OVER THAT THE THE ISSUE IS
WHETHER IT'S GOING TO SPUR
ENOUGH NEW CONSTRUCTION.
TO GENERATE REVENUE TO OFFSET
THOSE LOSSES AND I THINK THERE
ARE THREE REASONS WHY IT IS
LIKELY THAT THERE IS GOING TO BE
A SIGNIFICANT SPUR TO HOUSING
CONSTRUCTION IN RESPONSE TO THIS
INCREASE IN DEMAND.
NUMBER ONE THE INCREASE IN
DEMAND IS GOING TO BE FOCUSED ON
A VERY PARTICULAR SEGMENT OF THE
HOUSING MARKET. IT WERE SPREAD
THROUGHOUT. THE HOUSING MARKET
IN CALIFORNIA MIGHT NOT HAVE
MUCH OF AN IMPACT.
BUT IT'S NOT GOING TO BE IT'S
GOING TO BE FOCUSED.
MY NEXT SEGMENT OF THE MARKET
THAT SERVES.
SENIORS
CONDOMINIUMS WITH ELEVATORS.
TOWNHOUSES WITH ZERO LOT LINES.
SENIOR COMMUNITIES LIKE ROSS
MORE WHERE THERE'S NO UP CAPE
UPKEEP FOR THE RESIDENTS.
IT'S ALL DONE BY THE OF THE
HOMEOWNERS ASSOCIATION.
THE THE DEMAND THAT THIS
INITIATIVE IS GOING TO SPUR IS
GOING TO BE FOCUSED ON THIS
SEGMENT AND AS A CONSEQUENCE I
THINK IT'S GOING TO HAVE MUCH
MORE OF AN IMPACT.
IN TERMS OF SPURRING
CONSTRUCTION.
CLINTON NUMBER TWO IT'S A KIND
OF HOUSING PARTICULARLY
CONDOMINIUMS.
THAT IS VERY EFFICIENT AND HOW
IT USES LAND SO IT'S
ENVIRONMENTALLY FRIENDLY AND AS
PLANNING COMMISSIONS AND CITY
COUNCILS.
BECOME MORE SENSITIVE TO
ENVIRONMENTAL CONCERNS.
IT'STHE KIND OF OF HOUSING THAT
THAT THAT MOST RESPONSIVE TO
THOSE CONCERNS AND SO I THINK
IT'S GOING TO BE EASIER FOR
BUILDERS TO GET THOSE NEAR PLANS
APPROVED.
AND NUMBER THREE.
THE.
THE TARGET AUDIENCE FOR THE NEW
CONSTRUCTION SENIORS.
OUR AS A DEMOGRAPHIC GROUP THAT
IS THE GROUP THAT IS MOST
WELCOME IN CALIFORNIA
COMMUNITIES.
THEY DON'T PUT A BURDEN ON THE
SCHOOL SYSTEMS THEY DON'T
CONTRIBUTE TO CONGESTION AT.
EIGHT EIGHT O'CLOCK IN THE
MORNING AND AND FIVE O'CLOCK IN
THE EVENING.
AND MY WIFE WHO SPENT THE LAST
THIRTY YEARS.
IN.
TRYING TO PROMOTE AFFORDABLE.
HOUSING DEVELOPMENT.
TELLS ME THAT THE REAL PROBLEM
IS. GETTING LOCAL PLANNING
COMMISSIONS AND AND AND CITIES
TO AGREED TO SERVE BUILD FAMILY
HOUSING.
BUT SENIORS ARE ALMOST ALWAYS
WELCOME SO I THINK THERE'S A
VERY GOOD REASON THEIR NUMBER
VERY GOOD REASONS TO EXPECT.
THAT IN THIS CASE THERE IS GOING
TO BE AN INCREASE IN IN
CONSTRUCTION AND THAT'S GOING TO
HAVE ALL OF THOSE BENEFITS THAT
I MENTIONED. JUST A FOLLOW UP IF
I IF I COULD AND CHECK.
SO WHY WHY DO YOU THINK THE LA
EL IS IS DISCOUNTING THAT THAT
THE.
ARGUMENTS YOU'RE PUSHING AS FAR
AS THE IMPACT OF THAT
CONSTRUCTION ON THIS NICHE.
INDUSTRY AND THAT THAT THE NEXT
SUB SEGMENT OF THIS INDUSTRY.
WELL I HAVE THE UTMOST RESPECT
AND ADMIRATION FOR THE
LEGISLATIVE ANALYST'S OFFICE AND
I DON'T FEEL COMFORTABLE
SPEAKING FOR THEM. I DID NOTE
THAT MR YOU'LL ARE SAID HIS
TESTIMONY TODAY WAS BASED ON THE
PRELIMINARY ESTIMATE. THAT THEY
MADE BACK IN SEPTEMBER OF TWO
THOUSAND SEVENTEEN AS PART OF
THE TITLE AND SUMMARY PROCESS.
I DON'T KNOW WHAT THEIR FINAL
ESTIMATE IS GOING TO BE.
I DON'T KNOW THAT THEY WILL
LOOK MORE FAVORABLY ON THE
ARGUMENTS
THE ANALYSIS THAT MISTER DOCTOR
CAMPBELL AND I HAVE HAVE. HAD
HAVE DONE BUT I CAN'T AND I
CAN'T SPEAK FOR THEM.
BUT THE BUT BASIC POINT WE MAKE
HERE IS THAT YOU CAN'T APPLY THE
OVERALL CONSTRUCTION RATE TO
THAT PARTICULAR TYPE OF OF
HOUSING THE SMALLER. TYPE OF
HOUSING THAT DOCTOR HIM JUST
DESCRIBED.
SO I HAVE TWO QUESTIONS.
YOU MENTION THAT ONLY ELEVEN
COUNTIES RIGHT NOW PARTICIPATE
AND IT'S A VOLUNTEER PROGRAM
WITHIN STATE LAW RAIN NOW MY
QUESTION WOULD BE WHY ONLY
ELEVEN PARTICIPATING NOW IF IT'S.
SO USEFUL AND CONSTRUCTIVE THE
MY OTHER QUESTION IS ON.
BASED ON EXPERIENCE I HAVE A
MOTHER OF ADVANCED AGE I'M NOT
GONNA GIVE HER IS HOME NOW SHE
WOULD KILL ME.
HOWEVER WE HAVE BEEN THROUGH
THE LOAN PROCESS AND SO MY
QUESTION ON WHEN YOU'RE TALKING
ABOUT CONSTRUCTION OF THESE THIS
HOUSING FOR SENIORS IS.
IN YOUR ESTIMATION ARE THESE
HOMES IS ARE THESE TRANSFER
HOMES MORE EXPENSIVE OR LESSER
VALUE. AND IN MY EXPERIENCE.
SOMETIMES BUYING A HOME AND AN
ADVANCED AGE IS A CHALLENGE NOT
JUST BECAUSE YOU'RE ON A LIMITED
INCOME EVEN IF YOU HAVE SAVINGS
AND YOU AT EQUITY FROM YOUR HOME.
THAT SAVINGS DOESN'T ALWAYS
OFFSET IN THE LENDING PROCESS
THE FACT THAT YOU EITHER ARE
JUST YOUR INCOME IS JUST
RETIREMENT. OR.
OR THAT YOU'RE AND OF ADVANCED
AGE AND YOU'RE ASKING FOR A
THIRD I'VE ACTUALLY HAD SOMEONE
SAY TO ME BUT SHE'S.
THIS AGENT IT'S A THIRTY YEAR
LOAN SO HOW IN YOUR CALCULATION
HAVE YOU TAKEN THAT AND THEN MY
QUESTION ABOUT THE LEFT INCOMES.
SO I I I THINK YOUR SECOND POINT
IS A VERY ASTUTE OBSERVATION AND
I AGREED THAT THIS IS NOT GOING
TO BE A PANACEA FOR ALL SENIORS
THROUGHOUT THE STATE.
I THINK THAT AGAIN AND I'M I'M
NOT MAKING THE CASE FOR AGAINST
THE INITIATIVE BUT.
IT IT CERTAINLY WILL. REMOVE
SIGNIFICANT DETERRENT.
TWO SENIOR IS FINDING MORE
SUITABLE HOUSE SCENE BY ALLOWING
THEM TO AT LEAST MAINTAIN THEIR
CURRENT ASSESSED VALUE BASE.
AND NOT HAVE TO SPEND MORE MONEY.
FOR PROPERTY TAXES NOW THE REST
OF THE ECONOMICS OF THE MOVE.
MAY MAY NOT ALLOW THAT MOVED TO
TAKE TAKE PLACE BUT FOR MANY
PEOPLE IT WILL.
WITH REGARD TO THE IRAQ QUESTION
WITH REGARD TO THE PROP NINETY
COUNTIES A I HONESTLY TO DO NOT
UNDERSTAND. WHY THERE HAVEN'T
BEEN MORE COUNTIES OF SIGNED UP
BECAUSE THE SIZE OF THE COUNTIES
THAT HAVE OPTED IN TO PROP
NINETY?
HAVE AS DOCTOR.
HAVE DESCRIBED THEY'VE BEEN IN
THE PROGRAM FOR FOR YEARS
DECADES
AND THEY HOLD ABOUT TWO THIRDS
WE'RE TALKING ABOUT VENTURA
ORANGE LOS ANGELES SAN DIEGO
SENATOR THESE ARE BIG COUNTIES.
AND THEY CLEARLY HAVE COME TO
THE CONCLUSION THEY ARE LOSING
MONEY. AND THAT'S SECOND THEY'VE
CONTINUED TO STAY IN THE PROGRAM
L. WOULD BE INTERESTING TO KNOW
BECAUSE IT'S AYE. ELEVEN
COUNTIES IS NOT THAT MANY AND SO
IT WOULD BE INTERESTING TO KNOW
THAT THOSE ARE LARGE COUNTIES I
WONDER IF THERE'S AN ISSUE WITH
MORE COUNTIES BUT THEY MIGHT.
MISTER BLOOM.
THANK YOU.
.
A.
YOU'RE SEATED AT THE TABLE.
ARMED WITH THE PROPONENTS FOR
THIS MEASURE NEW TWICE SAID THAT
YOU'RE NOT HERE FOR AGAINST THE
MEASURE BUT.
I DON'T THINK YOU'D BE SEATED AT
THIS TABLE IF SOMEBODY DIDN'T
THINK THAT YOUR TESTIMONY WOULD
BE FAVOR FAVORABLE TO THE.
UP PROPONENTS OF THE MEASURE.
BOB WHAT I DON'T UNDERSTAND IS
I'M WE CURRENTLY HAVE A SYSTEM
THAT ALLOWS FOR MANY OF THESE
TRANSFERS TO TAKE PLACE CORRECT
YES SO WHY ARE YOU NOT RELYING
ON STATISTICS.
SHOWING THAT THERE'S INCREASED
HOMEBUILDING TAKING PLACE AS A
RESULT. OF THE CURRENT
CIRCUMSTANCE AND THEN
EXTRAPOLATING WHAT MIGHT HAPPEN
IN THE FUTURE.
WE WE WE LOOK FOR THAT THAT KIND
OF DATA AND ALL WEEK WE WE'RE IN
CONTACT WITH THE CENTER FOR.
RESEARCH ON THE REAL ESTATE
MARKET AT UC BERKELEY.
AND THE ONLY DATA THAT THEY
COULD REFER US TO IS DATA ON.
AGGREGATE HOUSING CONSTRUCTION
STATEWIDE WHICH ISN'T RESPONSIVE.
TO THE ISSUES THAT I THINK WE'RE
FACING HERE WE'RE TALKING ABOUT
A LIMITED SEGMENT OF THE MARKET.
GIVE THAT KIND OF DATA WAS
AVAILABLE ON THE IMPACT OF THE
PROPS SIXTY PROGRAM
YOU'RE RIGHT WE WOULD JUST
EXTRAPOLATE THAT BUT THAT DATA
JUST ISN'T AVAILABLE SO THE DATA
DATA IS NOT AVAILABLE. AND YET
YOU'RE ABLE TO.
.
DO WHAT YOU KNOW MIKE MY
COLLEAGUEFROM BIG BEAR WAS I'M
SUGGESTING THAT TO MISTER
HEWLETT WAS KIND OF GUESSING.
AS TO WHAT THE IMPACT WOULD BE
BUT IT DOESN'T SEEM TO ME THAT
WHAT YOU'RE DOING HERE IS ANY
BETTER THAN THE GAS EITHER. YOUR.
YOUR YOUR CONCLUSION IS BASED
ON OUGHT IF I UNDERSTAND
CORRECTLY ON THE THREE POINTS
THAT YOU MADE THAT.
THERE'LL BE INCREASED DEMAND.
BECAUSE SENIORS ARE GOING TO
WANT TO HAVE SOMEWHERE TO GO IN
THERE FOR THIS MARKET IS SOMEHOW
GOING TO MATERIALIZE FOR THEM.
AND IN SUPPORT OF THAT YOUR
POINTS TWO AND THREE ARE THAT
IT'S GOING TO BE EASIER TO
APPROVE BECAUSE PEOPLE LIKE
SENIORS BETTER.
AND SENIORS ARE MORE ACCEPTABLE
TO COMMUNITIES BECAUSE THEY
DON'T DRIVE.
I HAD I BEEN IN THIS CATEGORY
FOR TEN YEARS I'M STILL DRIVING
AND I EXPECT THAT I WILL BE FOR
AWHILE. AND WHEN I STOPPED
DRIVING.
I'LL PROBABLY IF YOU KNOW THAT
SHOULD HAPPEN AT SOME POINT I
WILL PROBABLY TAKE ADVANTAGE OF
A.
TRANSPORTATION NETWORK COMPANY
IN NEW PARA LIFT TO GET ME
AROUND THAT DOESN'T REDUCE CAR
TRIPS
SO I YOU KNOW IF SOMEBODY WHO
SERVED IN THE LOCAL GOVERNMENT
FOR FOURTEEN YEARS. THE DYNAMICS
OF HOW DEVELOPMENT.
GETS BUILT OR DOESN'T GET BELT.
I DON'T THINK IT'S GONNA CHANGE
AS A RESULT OF THIS BALLOT
MEASURE.
IF I MIGHT ADD.
BECAUSE THIS UNDER PROP SIXTY
PROP NINETY IS A ONE TIME
BENEFIT PEOPLE HAVE TO ELECT TO
USE THAT AND WE FOUND THAT.
THERE'S.
A LACK OF KNOWLEDGE ABOUT PROP
SIXTY PROP NINETY INTO A LOT OF
SENIORS DON'T USE THAT AS A
RESULT IT ONLY MAKES UP ABOUT
TWO PERCENT OF ALL TRANSACTIONS.
SO WOULD BE DIFFICULT GIVEN THE
LOW UTILIZATION RATE TO DRAW.
CONCLUSIONS BASED ON ITS
EXISTING YEARS.
THANK YOU.
AND OTHER COMMENTS OR QUESTIONS
ASSERTING.
DESPITE BACK MISTER HAM ó WHAT
ARE YOUR SUPPOSITIONS IN TERMS
OF REVENUE GROWTH WAS. A SPUR OF
NEW CONSTRUCTION DEVELOPMENT DID
YOU.
ESTIMATE WHERE THIS NEW
CONSTRUCTION WAS GOING TO OCCUR.
AND IT'S GOING TO OCCUR IN THAT
SERVICE THROUGHOUT THE STATE OF
CALIFORNIA BUT MORE LIKELY. NOT
IN THE HIGHEST.
PRICED REAL ESTATE ON THE COAST.
MORE LIKELY.
FURTHER INLAND. BUT NO WE
DIDN'T DUH WE DIDN'T DO A
GEOGRAPHIC ANALYSIS OF WHERE
IT'S LIKELY TO BE BUILT.
WELL I GUESS JUST LOOKING AT
THAT.
TEN COUNTY THAT ALREADY. ALLOW
THE PROP NINETY TRANSFERRED
THAT'S.
POPULATION WISE I'M JUST
OFF THE TOP OF MY HEAD. ON LOOKS
LIKE HALF THE POPULATION OF THE
STATE'S READY COVERED BY.
THESE COUNTIES AND IN LARGE PART
MOST OF ALMOST ALL OF.
SOUTHERN CALIFORNIA THERE THERE
WOULD BE.
IT COULD BE ARE DID I DO ALREADY.
I'M SUPPOSING THAT THERE'S GOING
TO BE ONLY DEVELOPMENT IN
NORTHERN CALIFORNIA TO SOUTHERN
CALIFORNIA BECAUSE THEY ALREADY
CAN DO THESE.
TRANSFER IS WHAT YOU'RE SAN
BERNARDINO RIVERSIDE ORANGE SAN
DIEGO LA VENTURA ALL OF SOUTHERN
CALIFORNIA CAN DO IT.
NOW IT'S. THAT THE FEATURE OF
THE INITIATIVE THAT'S GOING TO
BE MOST RELEVANT TO SOUTHERN
CALIFORNIA IS A FEATURE THAT
WILL ALLOW PEOPLE TO PAY MORE
FOR THEIR NEW HOME THAN THE
PRICE AT WHICH THEY SOLD THEIR
OLD HOME. AND STILL GET THE
BENEFITS AND SO THAT WILL BE
VERY RELEVANT TO THE SOUTHERN
CALIFORNIA COUNTIES.
BUT YOUR YOUR GAS ABOUT THEOREM
THERE DID THE IMPORTANCE OF THE
OF THE ELEVEN COUNTIES WAS RIGHT
ON ITS FIFTY SIX PERCENT OF THE
STATE'S POPULATION AREAS ARE IN
THOSE COUNTIES RIGHT SO JUST NOT
CLEAR TO ME WHERE THIS
CONSTRUCTION BOOM WOULD. TAKE
PLACE AND HOW THEY WOULD BE
BENEFITS I WAS GONNA ASK. INTO
MISTER CARLYLE'S POINT HUNDRED
REPRESENTING EGGMAN YOU'RE BEING
THE COUNTY ASSESSOR FROM WHEN
THE COUNTY SAID DIDN'T.
HAS NOT OP I MEAN.
YOU GOT TO THINK OF SAN
FRANCISCO OPTING A MARKET THAT IS
ON. ON AFFORDABLE THEY WOULD
JUST MAKE IT SIGNIFICANTLY MORE
ON AFFORDABLE THAT'S WHEN THE
REASONS WE HAVE AN AMERICAN EVEN
TELL YOU. HOW MANY PHONE CALLS I
PICKED UP FROM SENIORS WHO
WANTED TO MOVE? INTO SAN
FRANCISCO AND ARMY IT WOULD
CONTINUE TO PRICE OUT ALL THE
FAMILIES AND. AND ALL THE PEOPLE
WHO ARE JUST TRYING TO. HANG ON
TO.
WE DON'T GET THEIR LITTLE
TOENAIL INTO THE. TO THE HOUSING
MARKETS TO JUST I GUESS BASED ON
YOUR. ECONOMIC I JUST DON'T
UNDERSTAND WHERE THE REVENUES
COMING FROM IN TERMS OF NEW
CONSTRUCTION BECAUSE. IF THIS IS
SOMETHING THAT IS ALREADY
OCCURRING. IN ON INLAND
CALIFORNIA MEETING IN SAMBOR
MEDINA MEANING IF SOMEONE FROM
LA CAN ALREADY GO TO SAN
BERNADINE OUT WHY ISN'T THIS
BUILDING BOOM ALREADY OCCURRING
BECAUSE IF I'M. LIVING IN WEST
LA AND I CAN GO OUT TO ON. YOUR
SABATINO WERE PALM SPRINGS ARE
SO SOMEWHERE ELSE OR ORDER
SANTEE WHY WHY AM I NOT DOING
THAT ALREADY LITTLE FOR FIRST OF
ALL I I WOULD NOT SUBMIT THAT IT
IS NOT OCCURRING.
THERE ARE STILL HOMES BEING
BUILT IN SOUTHERN CALIFORNIA AND
I THINK A LOT OF THAT IS. A
SIGNIFICANT PORTION MAY BE AND
RESPONSE TO THESE AND TRIP
INTERCOUNTY MOVES BUT THE SAYING
THAT IT WILL CAUSE MORE INTER
COUNTY MOVES.
AND WILL BE OF BENEFIT TO THE
HOUSING MARKETS IN SOUTHERN
IS TO FEATURE THAT DOESN'T
RESTRICTED.
TO THOSE WHOSE. NEW HOME COSTS.
MORE THAN THEIR OLD HOME.
THAT'S THAT'S WHERE THE
ADDITIONAL DEMAND WILL COME.
BUT DID HE BUT EVEN GIVEN THAT
RESTRICTION YOU DON'T HAVE ANY
DATA CURRENTLY.
SUPPORTING YOUR SOME SHARE
AROUND NEW CONSTRUCTION MEANING
YOU DON'T HAVE.
DATA DOES DEMONSTRATING IF I'M
LIVING ON THE WHOLE YA I'M
MOVING INLAND BECAUSE OF THIS
CONSTRUCTION.
NO I I THINK LET ME IF I MAY
RESPOND TO THAT.
SO THERE'S ABOUT FOUR HUNDRED
FIFTY OF THOUSAND TRANSACTIONS
ANNUALLY AND IT'S BEEN ESTIMATED
THAT THIS WOULD RESULT IN FORTY
THREE THOUSAND ADDITIONAL
TRANSACTIONS ABOUT A TEN PERCENT
INCREASE.
SO THAT'S ABOUT A TEN PERCENT
INCREASE IN TRANSACTIONS AND YET
BELIAU SAYING NO NEW ADDITIONAL
HOUSING CONSTRUCTION.
WHITTAKER AND AND WE WE JUST
SOMETHING THAT THAT MAKES ANY
SENSE WE THINK IF YOU LOOK AT
THE OVERALL IF YOU'RE BUILDING A
SINGLE FAMILY HOME. THAT'S NOT
GONNA HAPPEN.
BUT FOR EXAMPLE IN SAN FRANCISCO
IF YOU'RE BUILDING SMALLER HOMES
THEN YOU KNOW THAT AND WHICH ARE
LESS EXPENSIVE TO BUILD THOSE
ARE THE TYPES OF HOMES THAT WILL
BE BUILT.
SO SAYING HOW MANY TRANSACTIONS
OCCURRING NOW.
DUH LA OWES ESTIMATED THAT WOULD
BE TENS OF THOUSANDS OF
ADDITIONAL TRANSACTIONS WE SET
NO IN REALITY HOW ME ART HOW
ABOUT FORTY OF FOREIGN THIRTY
THOUSAND A. MONTH ONE THREE
THOUSAND FOOT AND OF THOSE HOW
MANY PEOPLE ARE MOVING TO.
SENIOR HOMES IN OTHER
NEIGHBORING COUNTIES.
AND SPURRING THIS NEW
CONSTRUCTION AYE I DON'T HAVE
THAT THAT KIND OF AND THAT'S A
CENTRAL ASSUMPTION OF MS RIGHT
HEMIS RESEARCH.
BUT WE DON'T HAVE THAT TYPE OF
DATA RIGHT NOW BECAUSE THEY'RE
ABILITY TO MOVE TO OTHER
COUNTIES AS RESTRICTIVE THAT'S
THAT'S NOT TRUE I MEAN IF I'M IN
SAN DIEGO I CAN GO TO SAN
BERNARDINO. YEAH BUT THERE ARE
FINE NOW AND I CAN GO TO FORTY
SEVEN OTHER COUNTIES YOU CAN'T
GO TO IF WE WEAK WEAKEN IPAD AS
OR. YOU KNOW AND AND YOU KNOW
BEING BEING OF REFORM SOUTHERN
CALIFORNIA'S NORTHERN
CALIFORNIA'S DON'T LOVE GOING TO
SOUTHERN CALIFORNIA SOUTHERN
CALIFORNIA IS NOT A VERY MUCH.
YOU KNOW THEY HAVE THE ABILITY
TO MOVE INLAND RIGHT THIS THAT I
MEAN THE SUPPOSITION IS. IS
AGAIN IF I'M IN SAN DIEGO
THERE'S A LOT OF REASON FOR ME
IN TERMS OF DOWNSIZING TO MOOD
CAN I DON'T KNOW SELECT ONE OF
LEAVE FOR ME SAID IF YOU GOT THE
BEST WEATHER IN THE REGION.
WHAT WHY WHEN SHE JUST MOVED
FURTHER INLAND WHERE WORST THAT
I I GUESS I DON'T HEAR ANY DATA?
BACKING UP YOUR ASSUMPTION
AROUND THIS CONSTRUCTION BOOM
THAT'LL GENERATE ANY REVENUE AND
THAT'S MY CONCERN GIVEN THE
POTENTIAL BILLIONS OF DOLLARS
THAT SCHOOLS BUT LOOSE AND AND
YOU HAVE ENOUGH. DATA YOU SHOULD
BE ABLE TO SAY OF THE FOUR
HUNDRED AND FIFTY THOUSAND THAT
ARE YOU KNOW OTHER TOUCH OUR
FORT FORTY THREE THOUSAND YOU
SET FOR YOURSELF FORTY TWO THAT
UP THE FORTY THREE THOUSAND.
WHERE THEY MOVING TO BECAUSE
THEY HAVE TO SUBMIT TO YOU WHERE
THEY'RE GOING? IN ARE THEY GOING
TO SENIOR HOUSING ARE THEY GOING
TO THESE CONDOS ARE THEY GOING
TO THESE ROSS MORSE ARE THERE.
BUT LET MILLION GERMANS WE KNOW
YOU HAVE THAT FORM YOU HAVE TO
SUBMIT A FORM OF WHERE THEY'RE
GOING BUT WE WE HAVE DATA WE WE
CAN ESTIMATE HOW MANY PEOPLE ARE
MOVING ACROSS COUNTY LINES AND
TAKING ADVANTAGE OF THE
PROPOSITION SIXTY BENEFIT I
DON'T HAVE THAT INFORMATION HERE.
BUT THE SURVEY DATA WILL ALLOW
YOU HAVE THIS WILL OF THE FORTY
THREE THOUSAND LETTER WRITER
WOMAN IF I MAY WE SEEM TO BE
HAVING A BACK AND FORTH KIND OF
THING GOING ON HERE AND I
CERTAINLY. HE'S ANSWERING SOME
ARE ASKING SOME GREAT QUESTIONS
BUT I JUST.
WANNA MAKE SURE WE ARE
RESPECTING THE DECORUM OF THE
COMMITTEE.
WELL I'M JUST TRYING TO GET AT
THE CENTRAL REVENUE QUESTION AND
AND I GUESS MY QUESTION IS
THERE'S THERE'S ACTUAL ACTUAL
DATA AS OF TODAY. AND WE KNOW
THESE FORTY THREE S. IN ORDER
FOR THESE FORTY THREE THOUSAND
PEOPLE TO GET A TRANSFER THEY
HAVE TO TELL YOU WHERE THEY'RE
LEAVING AND WHERE YOU'RE GOING
SO WE KNOW THAT. THE THIS IS SO
I'M JUST ASKING THE PROPONENTS.
WHETHER GOING ALL WE'RE TRYING
TO DO IS POINT OUT THAT THERE IS.
.
INCONSISTENCY WITH REGARD TO THE
LA THOSE.
ANALYSIS IN WHICH THEY'RE
SAYING THERE'S THAT THEY'LL BE
THIS INCREASING DEMAND BUT NO
INCREASE NO.
HOUSING CONSTRUCTION.
WONDERSTRUCK UNDERSTAND YOUR.
ANALYSIS THAT YOU PAID FOR ARM.
THE ANALYSIS OF THE FORTY THREE
THOUSAND AND THIS ASSUMPTION
AROUND THE REVENUE GROWTH AND.
WHERE THAT'S COMING FROM BECAUSE
OBVIOUSLY?
YOU YOU I ASSUME MISTER MISTER
HAMM DOCTOR CAMPBELL SAW OF
THESE FORTY THREE THOUSAND
INDIVIDUALS. EXTEMPORE WENT INTO
THESE SENIOR HOMES WHICH WOULD.
HOW THIS PIECE IN A PRECEPTOR
SUPPOSITION THAT HEY? IF IF THIS
WENT UP IF THIS NUMBER WENT UP
TO LET'S SAY A HUNDRED THOUSAND
THAT THIS WOULD SPUR. A EXPERT
AND DEVELOPMENT WHICH IT WOULD
IF IN FACT THOSE FORTY THREE
THOUSAND INDIVIDUALS WERE GOING
TO THESE TYPES OF PROPERTIES.
SURVIVAL THINKS.
SO ASSEMBLY MEMBER TING IT'S IS
SO CO CHAIR OF THE JOINT OF A
JOINT INFORMATIONAL HEARING.
SO IT CHAIR.
SO THE QUESTION IS FINE HOWEVER
I BELIEVE THAT THE DATA IS JUST
NOT AYE. AYE AS SO FAR WHAT
WE'VE GATHERED IS THAT THERE IS
NOT SUFFICIENT DATA ON SEVERAL
POINTS OUT OF THIS CONVERSATION
AND WHETHER YOUR OPPONENT ARE.
NOT IF YOU'RE PROPONENT FOR OPEN
UP.
THE DATA IS LACKING HOWEVER
WITHOUT I BELIEVE. AS A MEMBER
MURATSUCHI HAS A QUESTION. YES
COMMENT THANK YOU SO.
THAT THE PRIMARY DIFFERENCE AS
YOU HIGHLIGHTED BETWEEN THE
CURRENT LAW AND THE PROPOSED
INITIATIVE IS THAT IT WOULD
ALLOW. PEOPLE TO CARRY THEIR.
PROP THIRTEEN.
ASSESSMENT TO THEIR NEW
PROPERTY IF IT'S GRAY OF GREATER
VALUE THAN THEIR CURRENT HOME IS
THAT CORRECT RIGHT BESIDE RIGHT
NOW UNDER PROP SIXTY PROP NINETY
S. B. EQUAL LESSON. SO IF YOU
PURCHASE A MORE EXPENSIVE HOME
EAT EVEN IF THE DOLLAR OVER YOU
CAN'T MAKE THE TRANSFER SO IS
THERE DATA SHOWING THAT THESE.
THESE.
THAT THESE NEW DEVELOPMENTS
THAT ARE TO BE SPURRED TO BE A
BILL TO SENIOR HOMES
CONDOMINIUMS ARE GOING TO BE OF
GREATER. ON. AVERAGE ARE GOING
TO BE OF GREATER VALUE THAN THE
HOMES THAT ARE GOING TO BE SOLD.
BECAUSE THAT'S THE PRIMARY
BENEFICIARY OF THIS INITIATIVE
RIGHT RIGHT WE'VE DONE US SOME
STUDIES WHERE EVEN WHEN
SOMEBODY'S DOWNSIZING ALBEIT TO
IN YOUR HOME. KNOW TIME MARCHES
ON IT YOU CAN JUST COST MORE AND
AND NOT SIGNIFICANTLY BELOW MORE
BUT ENOUGH SO THAT IT PREVENTS.
THEM FROM DOING A TRANSFER.
BUT ISN'T IT MORE LIKELY THAT IT
WOULD BE THIS INITIATIVE WOULD
BE USED BY PEOPLE WHO WOULD WANT
TO. BUY A NICER.
MORE EXPENSIVE HOME WHO OUT AND
RATHER THAN NOT NECESSARILY THAT
I DON'T THINK AGAIN THIS GOES
BACK TO MS BROOKS POINT THESE
ARE CHIU WERE WE WOULD BE
GUESSING AS TO FOCUS MOTIVATIONS.
.
THE POINT WE WOULD WANT TO MAKE
ON THIS THOUGH IS IF THEY DO
PURCHASE A MORE EXPENSIVE HOME
THE GONNA HAVE TO PAY PROPERTY
TAXES ON THAT MORE EXPENSIVE
HOMES.
YEAH I I JUST DON'T SEE.
IT IT JUST DOESN'T SEEM TO MAKE
SENSE TO ME THAT IF THE PRIMARY
BENEFICIARY THE INITIATIVE. IS
FOR PEOPLE TO BUY A MORE
EXPENSIVE HOME BUT NO THAT'S NOT
THE PRIMARY REASON IT'S JUST I
ACTUALLY THINK THAT THAT IS A
TECHNICAL ERROR. THAT WAS MADE
BY THE RITUAL DRAFTERS.
BECAUSE RIGHT NOW IF THERE'S YOU
CAN HAVE UP TO A TWO YEAR GAP.
BETWEEN SELLING YOUR HOME AND
PURCHASING YOUR HOME AND THERE'S
A FIVE PERCENT INFLATION FACTOR
PER YEAR. SO YOU CAN INFLATE
THAT WHAT YOU SOLD YOUR HOME FOR
TO RECALCULATE WHICH YOU CAN BUY
FOR.
THAT'S THE RARE CASE WHERE
SOMEBODY CELLS AND THEN WAITS
TWO YEARS AND BUYS THE MORE.
YOU KNOW THE USUAL SITUATIONS
WHERE YOU BUY AND SELL
SIMULTANEOUSLY BUT IF YOU DO
THAT EVEN IF YOU'RE A DOLLAR
OVER YOU CAN'T DO THE TRANSFER
BUT YOU ADMITTED EARLIER WE
START OFF SAYING THAT. THE
BIGGEST DIFFERENCE BETWEEN THE
CURRENT LAW AND THE PROPOSED
INITIATIVE ARE PEOPLE WHO ARE
BUYING MORE SEEKING TO BUY MARKS
AND OF THAT WAS DOCTOR HANS
POINT THAT THAT'S WHERE THE.
REVENUE WILL CALM BECAUSE RIGHT
NOW ALL THESE ALL THOSE FOLKS
ARE ARE ARE LOCKED DOWN OF BEING
ABLE TO DO A TRANSFER. WITH THIS
CHANGE WHICH FORCES THEM OR
REQUIRES THEM TO PAY ON ANY
INCREASE YOU KNOW ALLOW THEM TO
MAKE THAT TRANSFER.
THANK YOU WE WILL HAVE THE UP
WHAT I QUESTION ANY OTHER
QUESTIONS OR COMMENTS CAN WILL
HAVE THE OPPONENTS COME UP.
DOROTHY JOHNSON TERRY BRENNAN
MICHAEL MCLAUGHLIN.
THINK KILL.
WHOEVER WANTS TO PICK IT UP OF
ALL START OUT THE MORE TIME FOR
THE CHIEF.
pMADAM CHAIR AND.
MEMBERS TERRY BRENNAN BEHALF
SERVICE IN PLACE INTERNATIONAL
UNION WE'VE HAD A VERY SPIRITED
DISCUSSION DAY SO I DON'T ONE.
I'LL BE VERY BRIEF AND HIT A FEW
POINTS ARE MADE APPRECIATED DE.
.
SORT OF DIFFERENCE BETWEEN THE A
DR HAMS ANALYSIS AND THE LA OPEN
HOUSE.
ONE DESCRIBED IS MORE STATIC IN
ONENESS THAT DYNAMIC.
I WOULD LIKE TO POINT OUT THAT
NGUYEN.
THE LA O. TALKS ABOUT THE TENS
OF MILLIONS OF OFFSETTING
REVENUE.
TO THE BILLION DOLLAR LOSS
SCHOOLS LOCAL AGENCY SPECIAL
DISTRICTS
CITIES COUNTIES.
THE OFFSETS ARE STATIC.
THESE TRANSFER FEES AND COUNTY
TAX FEES ARE ONE TYING.
FEES AS OPPOSED TO ONGOING
LOSSES EVERY YEAR IN PROPERTY
TAX CONTRIBUTIONS. SO EVEN
THOUGH THEY'RE GONNA OFFSET
SLIGHTLY THE DISAPPEAR.
THE ONLY DYNAMIC REVENUE OFFSET
WAS INCREASED.
VALUES OF THE HOMES.
THERE WAS THE TALK ABOUT DRIVING
IT UP POTENTIALLY SEVEN PERCENT
BECAUSE THEY'RE ABLE TO USE THE
PROPERTY TAX SAVINGS.
TO PAY MORE FOR NEW HOMES.
I DON'T THINK THAT'S IN OUR
INTEREST WHEN WE HAVE A HOUSING
CRISIS.
TWO SAME WERE DRIVING THE COST
OF HOMES UP BECAUSE THEY'RE MORE
AVAILABLE TO THE SENIORS.
THE SPECIAL CLASS WE'VE A CREED
THAT CAN I PURCHASE A UPSCALE
HOMES.
HAVING SAID THAT I GUESS THE
THE LAST CONCERN IS ABOUT
WINNERS AND LOSERS.
IT'S CLEAR THEY'RE GOING TO BE
COMMUNITIES TO GAIN UNDER THE
SINK COMMUNITY STEP SUFFER UNDER
THIS IT'S A CLOSED SYSTEM.
.
THERE WERE ONE THING WE DO NOW.
THERE ARE LOSERS.
OUR SCHOOLS.
OUR LOCAL AGENCIES
OUR FIRE DISTRICTS.
ARE GOING TO LOSE AT LEAST A
BILLION DOLLARS IN REVENUE.
THE STATE.
OF CALIFORNIA'S GOING TO HAVE TO
MAKE UP ABOUT HALF OF THAT PAID
BACK FILLING THE SCHOOL REVENUES.
IT WAS A DISCUSSION ABOUT BASIC
A DISTRICTS AND PEOPLE COMING
AYE I SHOULD TAKE PEOPLE.
COMMUNITIES COMING ON AND OFF
BASIC QUE DAYTON AND THE
COMPLICATIONS RELATED TO THAT.
AND THEIR WINNERS. THE REAL
ESTATE INDUSTRY.
ARE THERE GOING TO WIN HERE.
ATTY EXPENSE OUR SCHOOLS OUR
CITIES AND OUR COUNTIES.
A FOR THAT REASON WE REMAIN
OPPOSED TO THE INITIATIVE THANK
YOU.
FIRST NEXT.
GOOD AFTERNOON MADAM CHAIR THAT
MY NAME IS MIKE MCLAUGHLIN AND
THE FIRE CHIEF WITH CONSUMERS
COMMUNITY SERVICES DISTRICT FIRE
DEPARTMENT WERE NOTONOMUS
SPECIAL DISTRICT.
PROVIDING PARKS AND RECREATION
AND FIRE PROTECTION SERVICES
TO THE COMMUNITIES NOW GROVER
GOLF HERE IN SOUTHERN SACRAMENTO
COUNTY. TERMS TO MY HONOR THANK
YOU FOR THE OPPORTUNITY TODAY TO
BE ABLE TO SPEAK WITH YOU
REGARDING THIS.
THIS IS CONCERNING FOR A NUMBER
OF REASONS SOME OF WHICH WAS
SPOKEN BY THE OPPONENTS A
PROPONENTS OF. OF OF THIS
INITIATIVE I'M JUST A BIT
EARLIER. THUMB BE I SUBMIT TO
YOU THAT UP PROPOSITION THIRTEEN
AND PROPOSITION NADER WORKING
THE WAY THEY'RE DESIGNED IT TO
BE ABLE TO PROVIDE RELIEF AS AS
OUR MARKET CHANGES YOU KNOW
SOMETHING THAT. I REMEMBER
GROWING UP IN THE FIRE SERVICE
AND KNOWING THAT BEING A PART OF
A SPECIAL DECK STRICTEST WHERE
YOU WANTED TO BE BECAUSE THE
REVENUES ARE SO MUCH STATE MORE
STABLE. FROM PROPERTY TAXES
THERE'S LESS AFFECTED BY LONG
TERM FLUXES INFLUXES OF A OF THE
ECONOMY THEM AS WE'RE FINDING
OURSELVES IN THE POST RECESSION
STAGE. THAT AS OUR DISTRICT WE
DID NOT SEE A DOWNTURN IN THE
ECONOMY AND AND OUR PROPERTY TAX
REVENUE UNTIL THE NATION WAS
SEEING AN UPTICK COMING OUT OF
THE BOTTOMS OF THE DEPTH THE
RECESSION JUST BECAUSE PROPERTY
TAX TAKES. TWO TO THREE YEARS
BEFORE IT ACTUALLY ENDS UP
HITTING THE LOCAL TAX ROLLS A
LOCAL THE LOCAL DOLLARS SO IT'S
A LITTLE BIT OF A LAG IMAGE IN
BEHIND IN THAT REGARD. BUT AS WE
FIND OURSELVES TODAY.
SEVERAL YEARS POST RECESSION
THAT OTHERS REMAIN SIX POINT TWO
BILLION DOLLARS OF UNDERSIZED
VALUATION IN THE STATE IN THE IN
SACRAMENTO COUNTY ALONE SO.
THAT'S A DIFFERENCE AND SO GOING
INTO THE RECESSION THERE WERE
SIX POINT TWO BILLION DOLLARS
MORE SASS VALUE THAN THERE IS
NOW WITH THE PROPOSITION EIGHT
VALUE. SOME OF THAT IS BECAUSE
MANY OF THESE PROPERTY SOLD FOR
LESSER AMOUNT DURING THE
RECESSION SOME OF WHICH IS THE
BAY HAVE NOT YET RETURNED TO THE
PROPOSITION THIRTEEN VALUE TO
PUT THEM BACK TO THAT
PROPOSITION THIRTEEN PACE. SO AS
A AS GOOD AS PARTNER I'M
INITIATIVES THAT WE HAVE IN
PLACE WITH PROPOSITION THIRTEEN
AS A PROPERTY DROPS IT GIVES THE
TAX ASSESSOR'S THE ABILITY TO
LOWER THE TAX RATE. THAT SYSTEM
AB BY A I SUBMIT TO YOU IS
CURRENTLY WORKING ON IT SAID IT
BIGGEST MUCH TO THE TO STRUGGLE
WITH US AND LOCAL GOVERNMENT
WHERE AS A SPECIAL DISTRICT. AND
WE MAKE UP ABOUT SEVENTY FIVE
PERCENT OF THEM OF OUR REVENUE
BASED OFF OF PROPERTY TAX IT
WOULD BE A BIT HIGHER BUT WHERE
TRANSPORTING PARAMEDIC ENTITY.
AND SO WERE ABLE TO RECOVER
COSTS FOR PROVIDING
AMBULANCE SERVICE TO THAT HOW
TWO HUNDRED TWO THOUSAND
RESIDENTS WITHIN OUR DISTRICT.
HOME BUT WITH THAT.
WITH PROPOSITION TWENTY SIX
WERE ONLY ALLOWED TO DO A FEE
FOR SERVICE AND RECOVER OUR
COSTS WE CAN'T CHARGE MORE MAKE
A PROFIT BECAUSE THEN THAT'S A
TAX IN AND OF ITSELF. AND SO WE
HAVE SOME LIMITATIONS ESPECIALLY
IS A SPECIAL DISTRICT AND WHAT'S
AVAILABLE TO US. I'M JUST
KEEPING TO THE POINT I THINK
IT'S SOMETHING THAT WAS
INTERESTING. BUT IS IS IS IS THE
UP UP UP PROPONENTS BROUGHT
FORTH IT THERE WOULD BE
POTENTIALLY SOME OFFSETTING
REVENUE SUCHAS CAPITAL GAINS
TAXES TRANSFER TAXES INCOME TAX
AND SALES AND USE TAX.
WELL I SUBMIT TO YOU THAT THE
ONLY TAX OF MY DISTRICT IS
ELIGIBLE TO RECEIVE TO BE ABLE
TO PROVIDE PUBLIC SAFETY IN OUR
COMMUNITY IS PROPERTY TAX NONE
OF THOSE OTHER TAXES. ROLL DOWN
TO SPECIAL DISTRICTS OR THE
LOCAL GOVERNMENT IN THAT REGARD
AND SO THIS WOULD TRULY BE AN
OFFSET MAYBE. AT THE END AND AND
AS I THINK WE'VE LEARNED TODAY
THAT THERE'S NO YOU KNOW THAT IT
THERE SOME REALLY HEAR SOME GOOD
WORK IT'S GOING INTO A BUT WE
REALLY NEVER NEVER. WE REALLY
DON'T KNOW WHAT THIS WILL LOOK
LIKE ON THE END BUT WHAT I CAN
SAY IS EVEN IF IT'S A NET ZERO
SUM GAME AT THE END OF THE DAY
IN THE AMOUNT OF PROPERTY TEAR
THEM OUT OF TAX DOLLARS. BEING
PAID MANY OF THOSE ARE SWITCHING
FROM PROPERTY TAX INTO OTHER
TYPES OF TAXES THAT WOULD NO
LONGER BE AVAILABLE TO PROVIDE
THE SERVICES THAT WE PROVIDE
TODAY. OF WITHOUT ME HAPPY TO
ANSWER ANY QUESTIONS YOU HAVE
THANK YOU.
GOOD AFTERNOON MADAM CHAIR
DOROTHY JOHNSON OF THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES.
I'LL ALSO KEEP MY REMARKS.
BRIEF AND REALLY WANT RESPOND
TO SOME OF THE ISSUES THAT WERE
RAISED I'M DURING THE PROPONENTS
TESTIMONY AND FIRST ONE TO START
BY ECHOING THE CONCERN THAT
MAYBE STATEWIDE THIS WHEN THAT
OUT BUT REGION'S. AND COUNTY BY
COUNTY ISSUES REMAIN AND THAT'S
LARGELY BECAUSE OF THIS NEW
EXPANSION OF THE PROP NINETY
ALLOWANCE SO LINE ONE COUNTIES A
TAX BILL TO MOVE TO ANOTHER. AND
THAT'S ESPECIALLY TROUBLING AND
WE DO HAVE ELEVEN COUNTIES
CURRENTLY THEY'LL PROVIDE THE
PROP NINETY PERMISSION. LARGELY
A WEE WEE HOURS I'VE SPOKEN TO
EARLIER THAT THESE ARE WEALTHY
COUNTIES THAT HAVE NOT SEEN A
PROBLEM. COVER EL DORADO COUNTY
JUST LAST FALL BUT IT AND
THEY'RE PROP NINETY PROGRAM
BECAUSE THEY WERE SEEN HALF A
MILLION DOLLARS IN PROPERTY
TAXES LOSS FOR THE COUNTY THE
CITIES AND SPECIAL DISTRICTS SO.
TO SAY THAT EVERY PROP NINETY
COUNTY IS A HAPPY WEALTHY COUNTY
WITH POSITIVE OUTCOMES.
THAT'S SIMPLY NOT TRUE I ALSO
WANT TO SPEAK TO THE ISSUE OF A
HOUSING BRIEFLY.
DESPITE THE SORT OF.
.
AT. THAT CHAIN OF EVENTS THAT WE
WOULD HOPE COULD POSSIBLY HAPPEN
BEST CASE SCENARIO. THIS MEASURE
WILL NOT BUILD A SINGLE
ADDITIONAL UNIT IT WOULD NOT
PROTECT A SINGLE A FOR A HOUSING
UNIT. AND WOULD NOT HELP
HOMEOWNERS OR SIMPLY PRICED OUT
OF OF THE MARKET AND SO WE THINK
TO SAY THAT THIS IS A.
REMEDY OR A SOLUTION TO THE
HOUSING CRISIS IN CALIFORNIA IS
SOMEWHAT DISINGENUOUS.
AND THEN FINALLY THE IDEA OF THE
PRETTY CLOSE ESTIMATES.
THE THOUGHT THAT THERE COULD BE
A REVENUE NEUTRAL OUTCOME.
THAT'S NOT SOMETHING THAT ARE
CRITICAL SERVICE PROVIDERS ARE
SAFETY NET PROVIDERS ARE QUALITY
OF LIFE PROVIDERS CAN YOU CAN
BANK ON THAT'S NOT HOW COUNTY
BUDGETS ARE MADE AND SO. THE
RISK HERE WOULD NEVER FALL TO
THE PROPONENTS OF IT FALLS
SQUARELY ON THE SHOULDERS OF
COUNTIES OF SPECIAL DISTRICTS OF
CITIES.
OF THE STATE FOR THOSE REVENUE
LOSSES AND THAT IS FAR TOO BIG
OF A.
THAT'S SOMETHING.
I'M ALRIGHT.
WILL MOVE TO PUBLIC COMMENT
.
THANK YOU.
DANIELLE CAN A KAISER ON BEHALF
OF THE CALIFORNIA TAX REFORM
ASSOCIATION THE ASSOCIATION IS
IN STRONG OPPOSITION. AND
AFFILIATES OUR POSITION WITH THE
COMMENTS OF THE OPPOSITION IN
PARTICULAR WE ARE CONCERNED
ABOUT THE SIGNIFICANT IMPACT ON
PUBLIC SERVICES AND LOCAL
GOVERNMENT. AS WELL AS THE
HARMFUL IMPACT WHEELS THIS WILL
HAVE ON NON SENIOR HOMEBUYERS
SUCH AS YOUNG FAMILIES MANY OF
WHOM ALREADY STRUGGLE TO FIND
AFFORDABLE HOUSING.
IN TOTAL THE MEASURE PROVIDES
LITTLE TO NO BENEFIT THE HOUSE
TO THE HOUSING MARKET WHILE
BENEFITING THOSE WHO HAVE
ALREADY REAPED SIGNIFICANT
BENEFITS. OF PROP THIRTEEN AS
WELL AS THE PROPONENTS OF THE
MEASURE THEMSELVES THANK YOU.
HELLO.
I MY NAME IS AARON STUMPF AND
I'M A RESIDENT OF SACRAMENTO
WHEN I'M A REALTOR. I HAVE BEEN
FOR ABOUT THIRTEEN YEARS AND I A
I CURRENTLY HOLD A BROKER'S
LICENSE AND I'M ALSO A SENIORS
REAL ESTATE SPECIALIST WHICH.
THE S. RES DESIGNATION MEANS
THAT I'VE. GONE THROUGH
ADDITIONAL EDUCATION IN ORDER TO
LEARN HOW TO HELP BUYERS AND
SPECIFICALLY SENIOR BUYERS AND
SELLERS TRANSACT BASED ON THEIR
INDIVIDUAL REAL ESTATE NEEDS.
AND EVERY WEEK I SPEAK WITH
SELLERS WHO.
NEED TO SELL A HOME THAT NO
LONGER CURRENTLY MEETS THEIR
NEEDS.
THE HOME MIGHT BE TWO STORIES
OF THE HOME MIGHT.
.
NOT BE IN A STATE OF DISREPAIR.
AND THE DESIRE TO MOVE CLOSER
TO THEIR FAMILY.
TO A HOME THAT SMALLER ON MAYBE
SINGLE LEVEL OR THINGS LIKE THAT.
THE NUMBER ONE THING THAT I
HEAR FROM SENIOR CLIENTS.
THAT PREVENTS THEM FROM SELLING
THEIR HOME IS THE POTENTIAL FOR
A SPIKE IN THEIR PROPERTY TAX
BILL.
I.
IT'S IT'S A HUGE PROBLEM IT'S A
REAL PROBLEM AND WE CALL THIS A
MOVING PENALTY TYPICALLY IN REAL
ESTATE.
THE PROPERTY TAX FINISH
INITIATIVE WOULD ALLOW SELLERS.
WHO ARE SENIORS TO MOVE TO
SMALLER HOMES?
CLOSER TO FAMILY WITHOUT THE
MOVING PENALTY THIS IS
CRITICALLY IMPORTANT.
I'M I'M REALLY THANKFUL THAT
THE CALIFORNIA ASSOCIATION OF
REALTORS HAS TAKEN THE
INITIATIVE TO DO THIS WHERE A
MEMBER DRIVEN ORGANIZATION ARM
AND OUR MEMBERS ARE TWO HUNDRED
THOUSAND MEMBERS.
BROUGHT THIS FORWARD TO TRY TO
SOLVE THIS PROBLEM WHERE SENIORS
DO NOT HAVE THE ABILITY TO
EASILY MOVE A LOT OF THEM ARE ON
FIXED INCOMES. A LOT OF THEM
DON'T HAVE THE SAME ABILITY THAT
YOUNGER COUNTERPARTS DO.
AND SENIORS OFTEN REMAIN HOMES
THAT.
ARE DANGEROUS FOR THEM TO BE AND
I HAVE CLIENTS THAT HAVEN'T BEEN
IN THERE UP STAIRS OF THEIR TWO
STORY HOME. IN YEARS BECAUSE
THEY CAN'T GO UP AND DOWN THE
STAIRS ANYMORE. I HAVE CLIENTS
WHO CAN'T. MAINTAIN THEIR YARDS
ANYMORE BECAUSE THEY DON'T HAVE
KIDS AROUND HELP THE MOBILE
HONORED TO GARDENING OR THINGS
LIKE THAT.
AND THESE ARE HOMES THAT ARE.
DANGEROUS POTENTIALLY THEY HAVE
PLUMBING LEAKS THEY HAVE ROOF
LEAKS.
THE SENIORS CAN'T AFFORD TO FIX
THEM.
.
THIS WOULD BASICALLY HELP FIX A
PATCHWORK OF REALLY INCONSISTENT.
TAX
PROPERTY TAX BASIS TRANSFER LAWS
THAT WE HAVE AS YOU'VE HEARD IN
OTHER TESTIMONY THERE ARE ONLY
ELEVEN COUNTIES THAT CURRENTLY.
RECEIVE.
INCOMING PROPERTY TAX BASIS
TRANSFERS.
HERE IN SACRAMENTO IF I HAVE A
CLIENT WHO WANTS TO MOVE NEAR
THERE. UP FAMILY IN PLASTER
COUNTY WHICH IS ONLY A HALF HOUR
AWAY. THEY CAN'T TRANSFER THEIR
PROPERTY TAX BASES WITH THEM
THEY CAN'T MOVED TO BE CLOSER TO
THEIR FAMILY.
I IT'S A HUGE PROBLEM. I'M AND
AGAIN LET'S NOT FORGET THE
POTENTIAL FOR ECONOMIC STIMULUS
STIMULUS.
WHEN NEW OWNERS BY THESE HOMES
THEY'RE GONNA SPEND MONEY ON
HOME IMPROVEMENT. THEY'RE GONNA
SPEND MONEY ON ENERGY EFFICIENT
UPGRADES TO THEIR HOMES I'M THAT
THE SENIORS JUST CAN'T CURRENTLY
AFFORD TO DO THINK YOU.
GOOD AFTERNOON MY NAME SET THREE
THE THREE GOVERNMENT RELATIONS
ON BEHALF OF P. COLLIER
ASSOCIATES. REPRESENTING
AMERICAN LEGION DEPARTMENT OF
CALIFORNIA AMERICAN GI FORM OF
CALIFORNIA AND VETS DEPARTMENT
OF CALIFORNIA. MILITARY OFFICERS
ASSOCIATION OF AMERICA
CALIFORNIA COUNCIL OF.
CHAPTERS ASSOCIATION OF UNITED
STATES ARMY OF CALIFORNIA
SCOTTISH AMERICAN MILITARY
SOCIETY CALIFORNIA. MILITARY
ORDER OF THE PURPLE HEART.
THE CALIFORNIA HOME SUPPORT OF
THIS INITIATIVE THANK YOU.
GOOD AFTERNOON MADAM CHAIR ROB
GROWS CLOSER WITH THE AND COUNTY
ASSESSORS ASSOCIATION.
.
WE DON'T A POSITION ON THE
INITIATIVE ONE OF THE VERY CLEAR
THERE AS ADMINISTRATORS WOULD
WANT TO SPEAK TO THE POLICY
IMPLICATIONS BUT WOULD LIKE TO
POINT OUT FOR THE COMMITTEE AND
THOSE OF YOU HERE TODAY. THAT.
CURRENTLY IN THE EXISTING
SYSTEM GOES FROM COUNTY TO
COUNTY BEING THAT THREATENS.
THEIR THIS INITIATIVE HE COOK
COUNTY A COUNTY BE KINDA SEE
COUNTY DE AND THE NUMBERS MOVING
UP AND DOWN WITH THIS SORT OF
OUR UNLIMITED TRANSFER THERE. SO
WE WOULD BE RELYING ON.
THE BOARD OF EQUALIZATION IS
SORT OF BECOMING A CLEARINGHOUSE
FOR THIS INFORMATION. AND I KNOW
WHEN IT COMES TO THE COST OF
THIS THERE IS A HARD COST WE CAN
EASILY ESTIMATES.
I THINK WAS TWENTY SIXTEEN THERE
ABOUT FIVE THOUSAND OR SO IT'S
PROP SIXTEEN NINETY ONE TEN
TRANSFERS THAT OCCURRED
STATEWIDE WE AS ALEJO POINTS OUT
CAN BE TENS OF THAT TIME TENS OF
THOUSANDS. EACH ONE OF THOSE WAS
ROUGH ABOUT A HUNDRED FIFTY TO
TWO AT ALL HOURS IN STAFF COSTS
AT THE SENSORS LEVEL. SUCH AS
LITTLE STARTED ON THE COST SIDE
FOR THE COMMITTEE.
THANK YOU.
GOOD AFTERNOON I'M TRACY CEZANNE
AND I'VE BEEN A LICENSED REAL
FOR REALTOR FOR THIRTY EIGHT
YEARS I'M ALSO THAT PROPERTY TAX
ISSUES CHAIR FOR CALIFORNIA
ASSOCIATION OF REALTORS.
A LOT OF THESE POINTS I ECHO AYE
SPEAKING FAVOR OBVIOUSLY AT THE
INITIATIVE. I WANNA TELL YOU
THOUGH THAT I TAKE THIS VERY
PERSONALLY BECAUSE I HAVE FAMILY
THAT.
A HAD THEIR HOME BURNED DOWN IN
THE NAPA FIRES. AND A THEY WERE
NOT ABLE TO MOVE IN WITH ANYBODY
WITHIN THE SAME COUNTY THEY DO
HAVE FAMILY IN SAN DIEGO.
BUT THEY COULDN'T.
MOVE THEIR PROPERTY TAX BASE TO
SAN DIEGO.
THEY ENDED UP THESE THIS WAS
SENIOR. RELATIVES IN THEIR
EIGHTIES AND NINETIES.
AND ENDED UP HAVING TO MOVE INTO
A SENIOR LIVING WHICH IS COSTING
THEM NINE THOUSAND DOLLARS A
PIECE EVERY MONTH.
.
I ALSO HAVE A CLIENT THAT IS
VERY SEVERELY DISABLED I'M SHE
NEEDS TO HAVE A MACHINE TO TALK.
SHE'S A WHEELCHAIR BOUND. AND
SHE WOULD LIKE VERY MUCH TO MOVE
INTO THE COUNTY WHERE HER FAMILY
CAN HELP TAKE CARE OF HER.
AND RIGHT NOW SHE'S UNABLE TO DO
THAT AND SO SHE PAYS.
FOR ONGOING IN HOME CARE WHICH
IS COSTING THOUSANDS AND
THOUSANDS OF DOLLARS A MONTH.
I SPEAK SPEAK AGAIN IN FAVOR OF
THIS INITIATIVE AND OF LIKE YOU
TO TAKE THAT INTO CONSIDERATION
WE ALSO WILL. SORELY NEED WE
SORELY NEED TO BUILD THE
INVENTORY SO THAT MORE PEOPLE
CAN AFFORD TO BUY HOMES.
THANK YOU.
MADAM CHAIR MEMBERS SAID DOUG
HOLLAND WITH THE.
BUT I'M POLICY DIRECTOR FOR
SACRAMENTO TAXPAYERS ASSOCIATION.
THANK YOU FOR THE OPPORTUNITY TO
SPEAK IN SUPPORT OF THIS
INITIATIVE.
THERE LOT NUMBERS HAVE BEEN
FLYING AROUND HERE TODAY IN A
NUMBER OF ISSUES RELATIVE TO
GOVERNMENT REVENUE.
BUT I DON'T WANT THE COMMITTEE
OR THE MEMBERS TO LOSE SIGHT OF
THE FACT AS WE'VE PROBABLY HEARD
AS WELL.
THAT THERE ARE REAL STORIES
BEHIND THE NEED FOR THIS TYPE OF
INITIATIVE.
SENATOR GAINES ON THE SENATE
SIDE HAS A BILL TO ALLOW A
VETERANS TO TAKE THEIR PROPERTY
TAX VALUES WITH THEM WHEN THEY
MOVE.
YOU HAVE SENIOR CITIZENS AND THE
AYE AYE KIND HAD TO CHUCKLE.
LISTENING TO THE LA OUT TALK
ABOUT AND IT SEEMED LIKE IT WAS
JUST KIND OF A ONE SIDE OF THE
EQUATION DISCUSSION.
IN THE ANALYSIS.
AND ON MY GOODNESS THE SKIES
GOING FALL IN BECAUSE BILLIONS
OF DOLLARS TECHNICALLY YOU'RE
TALKING IN LARGE PART ABOUT A
GROUP OF PEOPLE. AND ALL THE
DIFFERENCE TO MISTER POPE.
WHO MAY ONLY MOVE ONCE OR TWICE
IT'S NOT GOING TO BE DOMINOS I
DON'T SEE MY EIGHTY FIVE YEAR
OLD MOTHER SAYING I'M GOING TO
MOVE TO SANTEE?
AND THEN MAYBE TO SAN FRANCISCO
AND THEN MAYBE TO CRESCENT CITY.
IN THE SPAN OF THE NEXT DECADE.
SO THESE ARE REAL ISSUES THAT
FACE PEOPLE TRYING TO MAKE SOME
VERY SIGNIFICANT CHOICES IN
THEIR LIFE.
IN ORDER TO BE CLOSER TO FAMILY
CLOSER TO MEDICAL FACILITIES
THAT THEY NEED.
AND DON'T FORGET THE FACES
THAT ARE ATTACHED
TO THESE EQUATIONS IT'S MORE
THAN JUST A TRANSFER TAX.
OR LOSS OF REVENUE TO PARTICULAR
GOVERNMENT ENTITY THESE PEOPLE
THAT MAKE THESE CHOICES IN REAL
TIME. AN ANY BREAK THAT WE CAN
GIVE THEM I THINK THEIR WELL
DESERVED THANK YOU.
THANK YOU MADAM CHAIR ANTHONY
TOWN HELL WITH CALIFORNIA
SPECIAL DISTRICTS SUSHI XIN WE
REPRESENT THOUSANDS OF.
SPECIAL DISTRICTS.
ACROSS THE STATE THE PROVIDE ALL
MANNER OF ESSENTIAL LOCAL
SERVICES. THE SAME AMENITIES
AND QUALITY FROM ONE SERVICES.
THAT YOU WOULD WANT TO PLACE A
CLIENT TO.
WHEN THEY'RE RELOCATING TO A NEW
COMMUNITY INTO HOME.
I WON'T BELABOR IT AS ONE OF OUR
CONSTITUENTS.
MEMBERS THE FIRE CHIEF SPOKE
REALLY VERY ELOQUENT TO IT. BUT
OUR BORDERS TAKEN A.
UP.
ONCE MEASURE THANK YOU FOR YOUR
TIME.
GOOD AFTERNOON. MADAM CHAIR AND
COMMITTEE MEMBERS MY NAME IS
LINDA WOULD I AM A REAL ESTATE
AYE. BROKER AND I HAVE BEEN FOR
ABOUT TWENTY SIX YEARS I WOULD
JUST LIKE TO SPEAK IN SUPPORT OF
THIS MEASURE. I WOULD ONE THING
I REALLY DO WANT TO POINT OUT
THAT I DON'T THINK WE HEARD SO
MUCH IS THAT EVERY TIME SOMEBODY.
COMES IN AND BUYS THAT HOUSE AT
THAT SENIOR IS MOVING OUT OF
THAT IS CREATING A HOME THE
SOMEBODY IS GOING TO BE PAINFUL
PROPERTY TAX ON. MOST LIKELY NOT
ANOTHER SENIOR YOU HAVE PEOPLE
THAT ARE GOING TO COME FROM. THE
BAY AREA AND EXPENSIVE AREAS IN
SAN FRANCISCO THEY'RE GONNA COME
AND BUY A ONE TO BE CLOSER TO
THEIR KIDS OR GO TO A LESS.
EXPENSIVE AREA THAT'S GOING TO
OPEN UP HOMES IN DIFFERENT
PLACES I WILL JUST AS AN EXAMPLE
USE MANY OF MY CLIENTS I READ
THEY ARE GOING TO BE MOVING FROM
ONE HOME AND I'M GONNA JUST SAY
AS AN EXAMPLE FOUR HUNDRED
THOUSAND. THEY'RE GOING TO BUY
ANOTHER HOME AND MAYBE THEY'RE
GONNA MOVE TO A SENIOR COMMUNITY
AND A SIMILAR HOME THIS PUBLIC
IN ACOSTA ME BEFORE INNER FIFTY
THOUSAND IF WE HAD THIS
SITUATION. THEY WOULD BE ABLE TO
DO THAT PAY THE DIFFERENCE ON
THAT AND STILL MAINTAIN THEIR
TAX YOU WOULD NOT LOSE THEIR TAX
BASE THAT THEY WERE PAYING ON
THEIR POWER ON THEIR HOMES THEIR
MOVING FROM. THERE WOULD BE A
LITTLE BIT OF A DIFFERENT YOU'D
HAVE A NEW BUYER COMING IN AND
PAYING A MUCH HIGHER TAX RATE ON
THAT HOME THAT'S THERE. I JUST
WE DO SEE SO MANY PEOPLE THAT
ARE DO NEED TO BE ABLE TO MOVE
OUT OF THAT HOME THAT THEY CAN
NO LONGER CARE FOR. OR THEY.
HAVE THE JUST A LITTLE STEP DOWN
THEY'RE GONNA SLIPS AND FALLS
AND THINGS LIKE THAT SO I JUST
REALLY SPEAK IN SUPPORT OF THIS
MEASURE.
GOOD AFTERNOON MY NAME IS DENISE
TRUSTS FRANK I'M AND I HAVE BEEN
A LICENSED REALTOR FOR TWENTY
FIVE PLUS YEARS.
AND WHAT I REALLY WANT TO POINT
OUT IS THAT IT THAT THE.
THE ASPECT OF BEING ABLE TO
MOVE INTO A MORE EXPENSIVE HOME
VERSUS JUST SAME VALUE OR LOWER
IS VERY IMPORTANT BECAUSE ONE OF
THE BIG REASONS.
THAT BABY BOOMERS ARE MOVING IS
BECAUSE IT LIKELY TO THE KIDS
AND MORE IMPORTANTLY THE CRACK
KIDS.
AND IF YOU MOVING FROM
SACRAMENTO TO BECAUSE YOUR KIDS
IN THE BAY AREA.
YOU'RE NOT THAT THERE'S NO WAY
YOU CAN BUY HOME YOU CAN REMOVE
DOWNSIZING IT'S AN EARLY AND
STILL GONNA COST YOU MORE THAN
THE HOME YOU'RE CURRENTLY ANSWER
THAT'S A VERY IMPORTANT FACTOR.
AND THAT'S BLOCKING A LOT OF
PEOPLE INTO NOT BEING ABLE I'M
TO MOVE FROM WHEREVER THEY ARE.
THANK YOU ICE OUGHT TO SPEAK IN
SUPPORT.
HI MY NAME'S LEE RATLEDGE I'M A
REAL TURN SACRAMENTO THREE EIGHT
YEARS AND I'M OBVIOUSLY GOING TO
SPEAK IN SUPPORT.
COINCIDENTALLY I'M NOT MAKING
THIS UP I HAD A REFERRAL THIS
MORNING.
AND SPOKE WITH THEM AND IT'S AN
EIGHTY YEAR OLD MAN IN A SEVENTY
EIGHT YEAR OLD WIFE.
AND THEY WANT TO TALK TO BE
ABOUT MOVING FROM THE ARE IN THE
AREA. TO SET OUR SIGHTS.
AND. IF ONE OF THE FIRST
QUESTIONS I HAD FOR ME WAS ABOUT
PROP THIRTEEN AND TAKING THEIR
TAX BASES WITH HIM.
THE PROPERTY THEY WANT. THE
RANGE OF PROBABLY ONE OF OUR TO
BE AROUND THREE AND FIFTY
THOUSAND. THE HOME THEY BE
SELLING.
PROBABLY CLOSER TO THREE THEY'RE
NOT THERE REALLY DO IT.
AND THEY SAID FLAT OUT WE CANNOT
MOVE THIS IS NOT PEOPLE GETTING
RICH THIS IS NOT PEOPLE. TAKING
THEIR TAX BASE IN GOING AND
BUYING AN OCEAN FRONT PROPERTY.
THESE ARE PEOPLE AND
CALIFORNIANS IN SACRAMENTO.
THAT JUST THEY WANNA MOVED A
PLANNED UNIT DEVELOPMENT. THEY
WANNA MOVE WHERE THE LINES TAKEN
CARE OF WHERE THE EXTERIOR OF
THE HOMES TAKING CARE OF. THAT
HOME THEY SELL ON THE ARE IN THE
AREA WILL THEN BE FREED UP. TO A
FIRST TIME HOMEBUYER.
WHICH IS EXACTLY THE DEMOGRAPHIC
IS HAVING A HARD FOR THE HARDEST
PROBLEM BUYING A HOME.
SO THAT'S JUST ONE EXAMPLE I
DEAL WITH IT I I TRULY DEAL WITH
THAT MAYBE IT'S BECAUSE MY AGE A
LOT OF MY CLIENTS ARE BABY
BOOMERS ARE OLDER. BUT I HEAR IT
I HEAR IT WEEKLY.
SO I AM IN STRONG STRONG SUPPORT
I THINK IT'S GOING TO FREE UP
HOUSING AND GET SOME FOLKS MOVED
OUT OF THE HOMES THAT ARE NO
LONGER. GOOD FOR THEM AND FREE
THAT UP FOR NEW BUYERS THANK YOU.
THANK YOU.
GOOD AFTERNOON MY NAME IS SEVEN
ARE SIERRA. AND I HAVE BEEN A
REAL TO FOR THE LAST FIFTY FIVE
YEARS.
FIVE OF THE THE TO DEVELOP HERE
TO SUPPORT THE FOR SHOULD I
WOULD APPRECIATE YOUR VOTE.
IN A POSITIVE WAY TO HELP PEOPLE
BOTH THANK YOU.
SO DOCTOR PERCOLATE TO MAKE
PUBLIC COMMENT.
ARM I AM A SENIOR I'M SEVENTY
TWO I'M DOWNSIZING.
I'VE LIVED IN THE SAME HOME
THIRTY YEARS.
THE HOME IS SELLING FOR FOUR
TIMES WHAT I PAID FOR.
FOUR TIMES.
WELL I'M NOT FROM SILICON VALLEY
WHERE MIKE MY MAN MY.
MY BROTHER HE AREAS WHERE IT'S
TWENTY TIMES TYPICALLY.
BUT IT ANY RATE IT IS FOUR TIMES
THE POINT IS.
FROM THAT.
I CAN MOVE TO I'M DOWNSIZING I'M
GETTING HOME HALF THE SIZE IN
THE DEPARTMENT ACTUALLY.
UP WHERE I WON'T HAVE TO WORRY
ABOUT THE LAWN IT CETERA THE
POINT IS.
I'M MAKING A HUGE PROFIT ON THAT.
I HAVE FIVE HUNDRED THOUSAND
DOLLARS THAT ISN'T GOING TO BE
TAX.
BECAUSE OF THE.
ONE TIME EXEMPTION.
OF MY OWN FEELING IS SENIORS
YOU'VE LIVED IN THEIR HOMES A
LONG TIME CAN AFFORD.
TO MOVE TO OTHER PLACES BECAUSE
WE'RE MAKING A LOT OF MONEY
WINNER SELA HOUSES.
THE OTHER THING IS THIS MEASURE
JUST YEAH ALTHOUGH I HEAR
CONSIDERABLY ABOUT SENIORS HERE.
THIS MEASURE IS ABOUT EVERYBODY.
AND IT'S GONNA TAKE AWAY MONEY
FROM SPECIAL DISTRICTS IT CETERA.
AND IF IT WERE JUST ABOUT
SENIORS AND ALLOWING THEM TO
MOVE TO A CHEAPER HOME.
I MIGHT BE ABLE TO SUPPORT THAT
BUT IT'S ABOUT EVERYBODY AND
IT'S ABOUT MOVING TO MORE
EXPENSIVE HOMES. AND IT'S ABOUT
GETTING THE DISCOUNT IF YOU MOVE
ON YOUR TAXES IF YOU MOVE TO A
LESS EXPENSIVE HOME.
IT JUST DOESN'T MAKE A LOT OF
SENSE TO ME I'M. THANK YOU.
WITH THAT I WANT TO THANK
EVERYONE FOR COMING TO OUR JOINT
INFORMATIONAL HEARING WITHOUT WE
ARE TURN FROM THE JOINT
INFORMATIONAL HEARING.
AND THEN NOW I AM.
IOWA WHO