Loss of local control a big issue in new water tax fight

Shower head water droughtThroughout his tenure as governor, Jerry Brown has consistently pursued new revenue for transportation, housing and water. The Legislature, whose default reaction to any problem is to raise taxes on middle-class Californians, has only been too happy to oblige. As a result, California drivers were hit last year with an annual $5 billion gas and car tax and property owners were burdened with a new tax on real estate recording documents to fund affordable housing. As if those tax hikes were not bad enough, now comes the third in a trifecta of tax insults: a new tax on water used by homes and businesses. That’s right, the Legislature is preparing to tax a public good that is essential to life, a precedent-setting tax that is unheard of anywhere else in the nation.

Supporters of the bill will argue that the tax is needed because roughly one million people (mostly in the Central Valley) don’t have access to consistently clean drinking water. This is a legitimate problem due to decades of neglecting basic infrastructure, contamination of water supplies and the failure to make access to water delivery the priority it deserves.

But raising taxes is the wrong solution to this problem. It is unconscionable that California, which has a record-high $130 billion General Fund budget with a $6 billion surplus, can’t provide clean drinking water to a million people using existing resources. Is this not the first role of government, providing a public good essential to life? Moreover, why should taxpayers in Los Angeles, San Francisco and Sacramento have to pay higher water bills for a problem that is mostly limited to groundwater contamination in the Central Valley?

Most Californians haven’t even heard of this proposed tax hike. But that’s only because the Legislature is going out of its way to keep it hidden. Originally introduced as Senate Bill 623, the bill failed to advance last year because of widespread opposition. Nearly all residential homeowners would pay a dollar a month if this tax went through. The tax works on a sliding scale based on meter size — heavy commercial and industrial water users could pay up to $10/month. Not content to just abandon the bill, the governor has now decided to drop this tax in a budget trailer bill. These bills, often dozens of pages long with multiple topics, is the perfect place to hide a tax. If the bill moves forward, taxpayer advocates will watch carefully to ensure that the two-thirds vote requirement for tax hikes is enforced. Because most budget bills only need a majority vote, a lawsuit will quickly follow if the higher threshold is not met.

Our concern is that the governor has become so obsessed playing the “hide the tax” game that he hasn’t bothered to look at other alternative funding sources to solve this problem. If using a $6 billion surplus is off the table, there’s an option to tap into federal funding which is available for precisely this purpose. Or there are billions of dollars of unspent bond funds, including the recently voter-approved Propositions 1 and 84 that can be used to provide clean drinking water. Bond dollars are perhaps the best vehicle to provide major infrastructure improvements needed in the Central Valley. …

Click here to read the full article from the Orange County Register

Comments

  1. No surprises here. The POS progressives running this state stop at nothing to take more from the people living here. Something I had never heard of until very recently is that as of January 2013, a new law requires a one percent (1%) assessment on purchases of lumber products and engineered wood products for use in California, based on the selling price of the products. Here’s the link https://www.cdtfa.ca.gov/industry/lumber-products.htm Additionally, you pay a “pre-disposal” fee for every TV and computer monitor. Originally it was shown as a separate item on your receipt, but then it was included in the price so the consumer was no longer aware of the extra cost. The same “pre-disposal” fee applies to the purchase of paint in Kalifornistan. It was initially shown on your receipt and then it “disappeared” and was incorporated in the price of the paint. Who knows what else we are paying. They are very good at hiding taxes and fees.

  2. vistacharlie says

    san diego north county CA taxpayers of vista, carlsbad, oceanside and san marcos paid to have a desal plant built and is successfully operational. Now it sounds like brown is going to try to tax the output of that plant the state never paid into. NO WAY.

  3. Chicago isn’t the only jurisdiction that is under the thumb of Gangster Gov’t.

Speak Your Mind

*