OPINION: A Fair Progressive School Tax
We all benefit by increased real estate values substantially created by our excellent
Piedmont Schools. Normally larger homes increase in value more than smaller
homes. A single progressive Per Square Foot of Building Tax, a PSFBT, is the best
tax solution for each of us to fairly contribute to our schools based on property
value increases.
PSFBT is used in Alameda since 2011, Emeryville since 2007, Berkeley since 2010, and W. Contra Costa since 2004. Instead our School District has chosen to keep our large regressive flat tax and add a small progressive PSFBT.
March 2013 the School District replaced the existing tax that had “a variety of
progressivity to it” (Board President Raushenbush 12/12/2012) with a
regressive flat rate tax. This resulted in 76% of Piedmont taxpayers on parcels less
than 10,000 square feet (“sf”) paying 6% to 21% more. However 24% of
taxpayers, owners of large parcels, commercial buildings and multi-unit buildings
pay 7% to 80% less. Some large parcels over 20,000 sf go untaxed.
The District commissioned a survey of voter preference. Presented April 24 2019 to
the School Board, the Final Ballot Result compared a single progressive PSFBT that
generates 125% of current revenue to a regressive flat rate tax at 115% of
revenue. The Survey concluded that 73.4% of Piedmont voters definitely/likely will
vote for a 125% progressive PSFBT. The 115% flat rate tax received 62.1%
support. 66.7% is needed to pass.
Initially, I suggested a 115% progressive PSFBT which would likely poll above 74%
and I’m disappointed by the District unfairly comparing a progressive 125%
revenue tax to a regressive 115% tax. Despite this headwind the progressive tax
polled 11.3% higher. Rather than follow voter preference the District created a two
tax Special Election at a cost of $125,000 versus General Election cost of $35,000.
Additionally, as Piedmont taxes and bond obligations are already as expensive as
any in the State and proper funding is critical for Piedmont Schools, the School Tax
conversation should be revisited every four years.
So what is the tax cost to homeowners of a single progressive per square foot of
building tax (“PSFBT”) versus Measures G and H? Proponents state “Measure G will
cost all homeowners $2,763 per year. The cost to homeowners for Measure H will
be 25 cents per square foot of their home.” Measure H generates an additional 25%
in revenue so a single $1.25 per square foot of building tax will generate the same
total revenue as Measures G and H. While I advocated a 115% revenue increase, I
will compare the tax cost of a 125% progressive PSFBT to Measures G and H:
|
House SF
|
Tax G Existing
|
Tax H +25%
|
Total 125%
|
PSFBT 125%
|
|
2,736
|
$2,736
|
$684
|
$3,420
|
$3,420
|
|
|
|
|
|
|
|
2,400
|
$2,736
|
$600
|
$3,336
|
$3,000
|
|
2,100
|
$2,736
|
$525
|
$3,261
|
$2,625
|
|
1,800
|
$2,736
|
$450
|
$3,186
|
$2,250
|
|
1,500
|
$2,736
|
$375
|
$3,111
|
$1,875
|
|
3,000
|
$2,736
|
$750
|
$3,486
|
$3,750
|
|
4,000
|
$2,736
|
$1,000
|
$3,736
|
$5,000
|
|
5,000
|
$2,736
|
$1,250
|
$3,986
|
$6,250
|
If your home is smaller than 2,763 square feet you will pay less under a single
progressive tax. The median size home in Piedmont is about 2,400 square feet. I
estimate that under a single progressive PSFBT 63% of homeowners will pay less
than with Measures G & H. Mindful of an excessive cost to large homes, Alameda
uses a $7,999 cap and I suggested a $4,999 cap in Piedmont.
Likely you are among the 76% who paid more after 2012 and are in a home smaller
than 2,763 square feet. Additionally according to the District’s own data 73.4% of
residents support a single progressive PSFBT School Tax.
Proponents state: “If Measures G and H do not pass, up to 100 teacher positions will be eliminated.” This outcome would be awful and fortunately our current tax runs through June 2021 so there will be no revenue loss should G and H fail. There will be no teacher eliminations.
Vote NO on Measures G & H so the District will put before us our preferred
choice: a single progressive tax.
Rick Schiller
Piedmont taxpayer
Residents are encouraged to email me directly and I will send a simple Excel spreadsheet that more clearly explains the differentiation in cost of Measures G&H versus the taxpayer preferred progressive single Tax.
r_schiller@comcast.net