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HomeMy WebLinkAbout2014-15 - Expressing Support for Proposition 13 and Opposition to a Split Roll Property Tax ApportionmentRESOLUTION NO. 201415 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA EXPRESSING SUPPORT FOR PROPOSITION 13 AND OPPOSITION TO A SPLIT ROLL PROPERTY TAX APPORTIONMENT WHEREAS, on June 6, 1978, Proposition 13, officially titled the "People's Initiative to Limit Property Taxation," and popularly known as the "Jarvis -Gann Initiative," was overwhelmingly approved by California's voters, reducing property tax rates on homes, businesses and farms, and capping the rate of increase in the future; WHEREAS, prior to the adoption of Proposition 13, California's high rate of inflation had sent property tax bills in California soaring, causing many families to sell their homes because they could not afford to pay their taxes; WHEREAS, prior to the adoption of Proposition 13, property tax assessments showed wider divergences than assessment disparities under the current acquisition - value system; WHEREAS, with the approval of Proposition 13, real property values were adjusted to a base value equal to the 1975 -1976 assessed value of that real property, thereby introducing an objective standard upon which real property would be taxed and ending the previous subjective standard for assessment that engendered the property tax assessment abuses that occurred in the 1960s and 1970s; WHEREAS, with the passage of Proposition 13, California taxpayers, for the first time, were provided a measure of certainty with respect to their property taxes; WHEREAS, following the passage of Proposition 13, the average homeowner has saved tens of thousands of dollars in property tax payments, money that was instead spent to grow the economy, create jobs and foster economic development; WHEREAS, following the passage of Proposition 13, renters also benefitted as the reduction in property taxes reduced upward pressure on rents; WHEREAS, the volatility of income and sales tax revenue to the state and local governments is a major flaw in California's tax system, while Proposition 13 has rendered California's property taxes as a stable and predictable source of public revenue, even during economic downturns, which has provided a major benefit to local governments throughout California; WHEREAS, since the passage of Proposition 13, proposed alternatives to Proposition 13 would have had a variety of unwelcome effects, including substantial tax increases for low - income and elderly homeowners; WHEREAS, voters intended Proposition 13 to protect all property owners, and have repeatedly rejected previous attempts to impose higher taxes on small businesses, knowing that these so- called "split roll" proposals would inflict irreparable harm on California's economy; and WHEREAS, Proposition 13 has become a nationwide symbol for taxpayer revolt and for citizens exercising control and power over their governance. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: In recognition of the positive impact Proposition 13 has on the State of California, we formally reaffirm our support for Proposition 13 and the benefit that it provides to individual homeowners, renters, local governments and to the state's overall economy. Section 2: We further restate our opposition to any effort to split the tax rolls between commercial and residential property so that commercial property is reassessed at market value on a period basis versus only on change of ownership Section 3: The recitals provided in this resolution are true and correct and are hereby incorporated into the substantive portion of this resolution. Section 4: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 11th day of February, 2014. ATTEST: xwk 41N *, Leilani I. Brown City Clerk Flush N. Hill, II Mayor STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, L.eilani L Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2014 -15 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 11'h day of February, 2014, and that the same was so passed and adopted by the following vote, to wit: Ayes: Petros, Selich, Curry, Henn, Daigle, Mayor Hill Nays: Gardner IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 12'h day of February, 2014. k� '' "�V� City Clerk I Newport Beach, California {Seal}