Quote of the Day - The hardest thing in the world to understand is income tax.
Needless to say, there have been a number of court challenges, and it was eventually upheld. By the U.S. Supreme Court against the Los Angeles County Tax Assessor, Kenneth Hahn. I have no idea why they named a park after him. He lost the case.
But let's get back to why we're here. Enough with the history lesson. Our own local Court of Appeal gave us this little gem last week.
Presiding Justice Sills clarified how Prop 13 works.
The Assessor loses another one. Homeowner Renee Bezaire duked it out over the way the County tried to get around Prop 13. In 1995, our heroine bought a house in Seal Beach for $330,000. By 1998, the property did not gain any value, and the county once again enrolled the value at $330,000. Next year, the value was assessed at $343,332, a four percent increase, which the County wanted to tax. She argued that she deserved a tax refund because Prop 13 limits a property tax increase to two percent over the previous year.
Our local appeals court ruled that the inflation cap must apply to the original purchase price, rather than the previous year's reassessed value. So, no more trying to get around Prop 13 by reassessing the property value.