In 2013 PUSD went from a progressive tiered tax to a regressive flat tax. The imposition of the flat tax resulted in 76% of Piedmont taxpayers whose parcels are under 10,000 sf paying 6% to 21% more. A small percentage of taxpayers with homes on large parcels and commercial/multi-unit building owners enjoyed tax decreases of 7% to 80%.
The school’s pollster Dr. McLarney in 2019, when asked to compare a per square foot of building tax (PSFBT) to a flat rate tax, found 73.5% of voters would support a 125% increased PSFBT. Dr. McLarney found less enthusiasm at 62.1% of voters supporting a 115% increased flat tax. In summary the PSFBT generated 9% more income and 11% more support.
Dr. McLarney summarized: “more tax sensitivity for flat tax, less tax sensitivity for square foot version (5/08/2019 Memo).”
In 2025 Dr. McLarney was not asked to consider support for the PSFBT. There are two fundamental realities in place. First, a larger home will cost more initially and will sell for more than a smaller home of equivalent quality. If over a given period of time home prices double, then the $1M home nets $1M profit and the $2M home nets $2M.
Secondly a family in a large home will put more children in our schools than a smaller home. In fairness, those in larger homes that enjoy greater financial benefit at time of sale, and use more school resources, should pay a tax based on larger home size.
Only a progressive PSFBT brings our tax structure closer to equality for taxpayers of California’s most expensive school support tax, a tax critical to land value in Piedmont.
Ask the School Board to now place before voters a progressive tax based on square foot of building. Such a tax makes small incremental increases easy going forward. A PSFBT also attracts young families to the smaller starter homes and encourages increased enrollment.
The Alameda School District and others use a PSFBT with a legally allowed, lower flat tax on undeveloped parcels and a maximum cap so very large homes are not taxed exorbitantly.
The School Board proposes an evergreen tax which will preclude a tax conversation going forward if passed. This makes a progressive PSFBT critically needed now and for the future of Piedmont.