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I'll say those 2 words that absolutely makes a Californian break out with a cold sweat and makes his pants feel warm and sticky.

PROPERTY TAXES....

Oh yeah sacrificial lambs you cross yourselfs and utter the magic words that you ward off the evil words with...... PROP 13.

Why do you think Prop 13 was passed by the legislature back in 1978? To keep the old folks in their homes, by keeping property taxes affordable for them. WRONG ANSWER.

Sure it helped them, but the legislature knew that on average people in CA lived in their homes an average of 5 to 7 years. That meant that every few years a piece of property would be reapraised at it's current market value. This put into place the economic mechanism for hugh appreciation of home values. This happened for two reasons 1, your property taxes were stable and you knew what the bill would be for the coming years 2, if you stayed in your property you had essentailly a flat property tax curve, while the price of your RE ballooned, thus the wealth effect. If you wanted to move up you cashed in your inflated piece of property and used equity to buy the more expensive piece. Hopefully your wages made the increase in taxes affordable.

NOW THE EVIL ONE...Warren Buffet has said the dreaded words...RAISE PROPERTY TAXES as a means of helping ease the fiscal crisis CA is faced with. Notice how quickly he was shut up by Arnold...

If any of U brave CA souls cares to look at your property tax Bill you notice a list of charges above your basic Property Taxes...they are the municiple bond issue payments...usually for parks, street lighting etc in your community...but they add up. I wonder where the money is going to come from to make payments on the $15,000,000,000.00 bond issue that Arnold is proposing? Then my next question is where are they going to come up with the money for next years deficeit?

Maybe Arnold will not raise Property Taxes, maybe he will let the Democrats do that, as the only DESPERATE means to avert BK in the state of CA.

NOw comes the drop your load time boyz....If they Reapraise the property taxes for everybody in the state of CA say on a one time basis at the current market value. What will your Property Tax Be?


Let's see now that home in Laguna Niguel thats worth $1.2M at 1.25% is $15,000.00 a year in Property taxes. Or a $1250.00 a month for the privledge of living in the "Real CA." How many people will that push outa their homes, and don't you just think that will push the value of those homes down just a bit? Also what will rents do when the property owner is hit with his new tax bill?

Oh what webs we weave when we try to deceive....