The Times reported the other day that the city is proposing a tax increase of about 4.3% for next year.
The explanation is that city council previously had granted a $10,000 increase in the homestead exemption for seniors and people with disabilities:
Gonzalez said one of the main impacts to the city budget comes from the increase, to $40,000 from $30,000, in the homestead exemption for seniors and people with disabilities. The City Council approved increasing the senior exemption to $40,000 from $30,000 in September 2012.
The city manager said 45,509 out of a total of 125,577 homestead parcels qualify for the exemption increase, which means the owner of a home valued at $124,859 will pay about $619, about $40 less in city property taxes in fiscal year 2016.
The city has to offset the loss by spreading out the cost over the rest of the taxpayers.
The younger people will bear the brunt of the increase according to the article. Actually the $10,000 dollar increase in the exemption would give the seniors about a $70.00 decrease in taxes if the tax rate had stayed the same but since the rate is increasing that money will be taken back for those who have homes valued at more than $200,000 or so. Many seniors will actually end up paying more.
We deserve better