Measure D, our parcel tax approved in 2003, contains language allowing the District to increase the per parcel amount based on increases in an inflation index. It’s not an automatic increase because the Board has to vote to approve any change by July 31st of each fiscal year.
Last Thursday the Board accepted my suggestion that we not adopt the allowable increase for the 2010/11 fiscal year. This will avoid an increase of $1.88 per parcel, costing the District about $17,000 in foregone revenue.
I was fine with the inflation-adjustment language when we voted to put Measure D before voters back in 2003. Since then, though, conversations with multiple opinion polling firms convinced me that it isn’t wise to include inflation adjustment clauses in parcel tax measures. Even among people who support paying higher property taxes for education there are many who balk at the concept of their taxes increasing without having a say in the matter. So I plan to lobby the Board on any future parcel tax proposals that we restrict ourselves to fixed, known tax rates.
Thursday’s change won’t benefit anyone a lot — literally about the price of a cup of coffee — and it doesn’t cost the District much. But I think staying true to the idea of giving voters a chance to express their wishes when raising taxes is a good idea.
Enjoy your coffee!