Friday, July 19, 2019

History of FUSD Parcel Tax

Chung writes:

We advocated for Measure K back in 2010 because of significant budget cuts from Sacramento.  It was meant to be a temporary measure to get us through the emergency, and the tax should have expired in 2016.  Instead, Measure I came along and not only did it continue the parcel tax, it increased the tax by 37%.

BIG LESSON There is no such thing as a temporary tax increase.  Once a tax is introduced, there is always tremendous amount of inertia to keep it going, or even increase it.

Another thing to keep in mind is that we cannot look at individual tax in vacuum.  Why?  Because you have a single wallet, and from that wallet, you have to pay all the different kinds of tax, including: Federal income tax, Federal social security tax, Federal medicare tax, CA state income tax, property tax (including sub-components of parcel tax), sales tax, gas tax, etc...

10 states with the highest state income tax rates in 2018:

California: 1 to 13.3 percent
Hawaii: 1.4 to 11 percent
Oregon: 5 to 9.9 percent
Minnesota: 5.35 to 9.85 percent
Iowa: 0.36 to 8.98 percent
New Jersey: 1.4 to 8.97 percent
Vermont: 3.55 to 8.95 percent
Washington, D.C.: 4 to 8.95 percent
New York: 4 to 8.82 percent
Wisconsin: 4 to 7.65 percent

Top ten states with the highest sales tax rates in the US
10 – New York
(8.49%) – New York levies a sales tax at the state, city, and county levels. The combined sales tax rate in New York City can reach as high as 8.875%. Clothing and footwear sold for less than $110 are exempt from the tax.

9 – California
(8.56%) – The state sales tax rate in California is 7.25%, and counties, cities, and towns may charge an additional tax. Currently the highest rates in the state can be found in parts of Los Angeles, where the combined rate is 10.25%. Rate changes, if any, are published by the California Department of Tax and Fee Administration on a quarterly basis.

8 – Kansas
(8.67%) – The state sales tax rate in Kansas is 6.50%, but additional local and district taxe…
[11:14 AM, 6/29/2019] +1 (510) 754-9318: Even though at the state level, California's weighted average sales tax rate "only" ranks #9, our local sales tax rate of ~10% is among the highest in the country.

But it opened up the pandora box for parcel tax in Fremont.  FUSD wanted more in 2016 and got Measure K passed with a 37% increase.  Ann Crosbie is already talking about raising the tax even more next year.  The current crisis is created in order to have a pretext for supporting the tax increase.

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