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Is California really a low property tax state?

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Is California really a low property tax state?


Is California really a low property tax state?

Spoiler alert: the answer to that question is no. But even if you suspected this to be true, it doesn’t hurt to understand why. 

Prior to the passage of Prop. 13 in 1978, the average property tax rate in California was about 2.6%. In addition to this high tax rate, California, like most states, imposed the tax annually on the market value of property. Because California’s real estate market was robust throughout the 70’s, market values grew rapidly, and property tax bills skyrocketed.

Prop. 13 cut property taxes in a very significant way. It reduced by more than half the property tax rate – capping it at 1% – but also limited increases in taxable value to 2% annually.

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The fact that property taxes were cut so dramatically might explain why so many assume that California is a low property tax state. This assumption – more of a myth now – is perpetuated by tax-and-spend interests who argue incessantly for higher taxes.

But here are the facts: 

When it comes to total property tax collections, California ranks 19th out of the 50 states, according to the authoritative Tax Foundation. The “per capita” calculation is important because it refutes the argument advanced by progressives that California does not generate sufficient revenue for local government services. 

In response, tax-and-spend interests point to another Tax Foundation metric, which shows California ranking a relatively low 33rd in property taxes paid as a percentage of owner-occupied housing value. But this doesn’t prove that the state is tax-starved. It demonstrates that Prop. 13 achieves two seemingly conflicting policy outcomes: Generating above average revenue for local government services while protecting homeowners from being taxed out of their homes.

California’s “effective” property tax rate is less than one percent (.75%) because of Prop 13’s 2% limit on annual increases. (The longer one stays in a house, the more likely that the market value will exceed the assessed value). Contrast this with Texas where the “effective” property tax rate is 1.68%, almost double that of California. Taken in isolation, one would have to wonder why so many Californians are moving to Texas. The answer is simple: If property taxes were all that California collected, Texans would be moving here, not the other way around. (Texas has a top income tax rate of zero while California’s is the highest in the nation at 13.3%). More importantly, because housing is far more expensive in California, two identical houses, one in Houston and one in the Bay Area, could have wildly different property tax bills rendering meaningless the “effective” tax rate measurement. 

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The Tax Foundation explains this: “Some states with high property taxes, like New Hampshire and Texas, rely heavily on them in lieu of other major tax categories. This often involves greater devolution of authority to local governments, which are responsible for more government services than they are in states with greater reliance on state-level revenues like income or sales taxes.” No sane Texan would trade that state’s total tax structure for California’s. 

Another major consideration in determining if California is a high or low property tax state is something missed by all the traditional comparisons. Those comparisons only measure the traditional ad valorem (based on value) property tax which, as mentioned above, is limited to one percent in California. But California imposes many more taxes and levies that appear on the property tax bill beyond the ad valorem tax. And those add up. Don’t believe us? Just look at your property tax bill. 

Parcel taxes and a myriad of bond levies appear on virtually every property tax bill issued in California. In many jurisdictions, the “below the line” taxes and fees exceed the ad valorem levy. In 2014, the California Taxpayers Foundation compiled data on the prevalence of parcel taxes revealing about $2 billion statewide. Since that report is a decade old it is likely that that figure has doubled. 

While California homeowners might not fully understand all the complexities of existing data related to property taxes and all the comparative metrics, the best test is to simply ask, do you want to pay higher property taxes?  How many Californians would answer that in the affirmative? 

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Jon Coupal is president of the Howard Jarvis Taxpayers Association.



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California

Dramatic explosion caught on video destroys homes, injures six, officials say

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Dramatic explosion caught on video destroys homes, injures six, officials say


A natural gas line leak triggered a dramatic explosion that destroyed a Bay Area home on Thursday, injuring six people and damaging several other properties.

At least one person was inside the home before it was leveled in the blast. The individual managed to escape without injury, but six others were hurt, including three who suffered serious injuries, Alameda County Fire Department spokesperson Cheryl Hurd said.

“It was a chaotic scene,” Hurd said. “There was fire and debris and smoke everywhere, power lines down, people self-evacuated from the home. … Someone was on the sidewalk with severe burns.”

The leak started after a third-party construction crew working Thursday morning in the 800 block of East Lewelling Boulevard in Hayward struck a Pacific Gas and Electric underground natural gas line, according to a statement from the utility.

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Fire crews were first dispatched to the scene at 7:46 a.m. after PG&E reported a suspected natural gas leak, Hurd said. PG&E officials were already on scene when fire engines arrived, and reportedly told firefighters their assistance was not needed, Hurd said.

Utility workers attempted to isolate the damaged line, but gas was leaking from multiple locations. Workers shut off the flow of gas at about 9:25 a.m. About ten minutes later an explosion occurred, PG&E said in a statement.

Fire crews were called back to the same address, where at least 75 firefighters encountered heavy flames and a thick column of smoke. Surrounding homes sustained damage from the blast and falling debris. Three buildings were destroyed on two separate properties and several others were damaged, according to fire officials.

Six people were taken to Eden Medical Center, including three with severe injuries requiring immediate transport. Officials declined to comment on the nature of their injuries.

Video captured from a Ring doorbell affixed to a neighboring house showed an excavator digging near the home moments before the explosion. The blast rattled nearby homes, shattered windows and sent construction crews running.

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Initially, authorities suspected that two people were missing after the blast. That was determined not to be the case, Hurd said.

“They brought in two cadaver dogs looking to see if anyone was still trapped under the rubble, and the dogs cleared everything,” Hurd said.

Brittany Maldonado had just returned from dropping off her son at school Thursday morning when she noticed a PG&E employee checking out her gas meter. He informed her that there was an issue and they had to turn off the gas to her home.

She didn’t think twice about it.

“About 45 minutes later, everything shakes,” she told reporters at the scene. “It was a big boom…first we think someone ran into our house—a truck or something—and then we look outside and it’s like a war zone.”

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The house across the street was leveled, Maldonado said. When she watched the footage from her Ring camera she said it looked as though a bomb inside the home had gone off.

“I’m very glad that no one lost their lives,” she said.

Officials with the Sheriff’s Office, PG&E and the National Transportation Safety Board are continuing to investigate the circumstances that led to the explosion.

In 2010, a PG&E pipeline ruptured in a San Bruno neighborhood, destroying 38 homes and killing eight people. California regulators later approved a $1.6-billion fine against the utility for violating state and federal pipeline safety standards.

Staff writer Hannah Fry contributed to this report

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Neil Thwaites promoted to ‘Vice President of Global Sales & California Commercial Performance’ for Alaska Airlines and Hawaiian Airlines – Alaska Airlines, Hawaiian Airlines and Horizon Air

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Neil Thwaites promoted to ‘Vice President of Global Sales & California Commercial Performance’ for Alaska Airlines and Hawaiian Airlines – Alaska Airlines, Hawaiian Airlines and Horizon Air


Thwaites will lead the strategy and execution of all sales activities for the combined Alaska Airlines and Hawaiian Airlines team. His responsibilities include growing indirect revenue on Alaska’s expanding international and domestic network, as well as expanding Atmos for Business, a new program designed for small- and medium-sized companies.

Thwaites joined Alaska Airlines in January 2022 as regional vice president in California. Since stepping into the role, Thwaites has significantly sharpened the airline’s focus and scale in key markets and communities across the state, strengthening Alaska’s position as we continue to grow in California. He will continue to be based at the company’s California offices in Burlingame. The moves take effect Dec. 13, with Thwaites also continuing to lead his current California commercial planning and performance function in addition to Global Sales.

Prior to Alaska, Thwaites worked in multiple positions within the airline industry, including a decade holding roles in London, New York, and Los Angeles for British Airways (a fellow oneworld member); most recently as ‘VP, Sales – Western USA’, where he was responsible for market development strategy and indirect revenue for both British Airways and Iberia across the western U.S.

Thwaites is originally from the United Kingdom and graduated from the University of Brighton with a double honors degree in Business Administration & Law.

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Tiny tracker following monarch butterflies during California migration

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Tiny tracker following monarch butterflies during California migration


SAN FRANCISCO (KGO) — When this monarch butterfly hits the sky it won’t be traveling alone. In fact, an energetic team of researchers will be following along with a revolutionary technology that’s already unlocking secrets that could help the entire species survive.

“I’ve described this technology as a spaceship compared to the wheel, like using a using a spaceship compared to the invention of the wheel. It’s teaching us so, so much more,” says Ray Moranz, Ph.D., a pollinator conservation specialist with the Xerces Society.

Moranz is part of a team that’s been placing tiny tracking devices on migrating monarchs. The collaboration is known as Project Monarch Science. It leverages solar powered radio tags that are so light they don’t affect the butterfly’s ability to fly. And they’re allowing researchers to track the Monarch’s movements in precise detail. With some 400 tags in place, the group already been able to get a nearly real time picture of monarch migrations east of the Rockies, with some populations experiencing dramatic twists and turns before making to wintering grounds in Mexico.

“They’re trying to go southward to Mexico. They can’t fight the winds. Instead, some of them were letting themselves be carried 50 miles north, 100 miles north, 200 miles the wrong way, which we are all extremely alarmed by and for good reason. Some of these monarchs, their migration was delayed by two or three weeks.

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According to estimates, migrating monarch populations have dropped by roughly 80% or more across the country. And the situation with coastal species here in California is especially dire. Blake Barbaree is a senior scientist with Point Blue Conservation Science. He and his colleagues are tracking Northern California populations now clustered around Santa Cruz.

MORE: Monarch butterflies to be listed as a threatened species in US

“This year, there’s it’s one of the lowest, populations recorded in the winter. And the core zones have been in Santa Cruz County and up in Marin County. So we’ve undertaken an effort to understand how the monarchs are really using these different groves around Santa Cruz by tagging some in the state parks around town,” Barbaree explains.

He says being able to track individual monarchs could help identify microhabitats in the area that help them survive, ranging from backyard pollinator gardens to protected open space to forest groves.

“So we’re really getting a great insight to how reliant they are on these big trees, but also the surrounding area and people’s even backyards. And then along the way around the coast, how they’re transitioning among some of these groves. And we’re looking for some of the triggers for those movements. Right. Why are they doing this and what’s what’s driving them to do that? So those questions are still a little bit further out as we get to analyze some more some more of the data,” he believes.

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And that data is getting even more precise. The tags, developed by Cellular Tracking Technologies, can be monitored from dedicated listening stations. But the company is also able to crowdsource signals detected by cellphone networks on phones with Bluetooth connectivity and location access activated. And they’ve also helped develop an app that allows volunteers, citizen scientists, and the general public to track and report Monarch locations themselves using their smartphones.

CEO Michael Lanzone says the initial response has been overwhelming.

MORE: New butterflies introduced in SF’s Presidio after species went extinct in 1940s

“We were super surprised to see 3,000 people download the monarch app. It’s like, you know, but people really love monarchs. There’s something that people just relate to,” says Lanzone who like many staffers at Cellular Tracking Technologies, has a background in wildlife ecology.

A number of groups are pushing to have the monarchs designated nationally as a threatened species. If that ultimately happens, researchers believe the tracking data could help put better protections in place.

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“They’re highly vulnerable to, you know, some of the different things that that that we as humans do around using pesticides and also potentially cutting, you know, cutting down trees for various reasons. Sometimes they’re for safety and sometimes it’s, you know, for development. But so having an understanding of how we can do those things more sensibly and protect the places that they need the most,” says Point Blue’s Barbaree.

And it’s happening with the help of researchers, citizen scientists, and a technology weighing no more than a few grains of rice.

The smartphone app is called Project Monarch Science. You can download it for free and begin tracking.

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