TAX NEWS - June 2010

California Tax: Kensington voters pondering police tax

With a quarter of the votes in, the fate of Kensington's Measure G was too close to call. Voters are deciding if they are willing to pay an additional $200 per year to pay for the community's police department.

Police protection is now provided by the Kensington Police Protection and Community Services District. Property owners now pay $300 annually to the district. Measure G would increase the tax by $200 for single family homes and $300 for multiple family dwellings and commercial property. The measure must be passed by two thirds of the voters casting ballots. The tax increase would be tied to the local Consumer Price Index and could rise in the future due to inflation.

Supporters, including some members of the district's board of directors, insist the higher tax is needed to head off a projected $364,000 deficit in the district's 2010 budget.

Opponents counter that the district could save money by merging with the Kensington Fire District and that Kensington Police officers are paid more than their counterparts in other similar departments.

The town could contract with other cities for police coverage but a recent study showed that the option would not save enough to offset the deficit, board members said.