When Is a Tax Increase Not a Tax Increase?

My parents live in the San Fernando Valley, an area within the City of Los Angeles. The Los Angeles Daily News has an interesting story on how Los Angeles increased the trash pickup fee by 254% without having to take the measure to a vote.

Californians passed two propositions, Proposition 13 and Proposition 218, that mandate votes on tax increases. So how did Los Angeles get around this? Well, the 254% increase wasn’t an increase; rather, it was an elimination of the subsidy of trash pick-up fees.

Over the next few years Angelenos will see their trash fees increasing from $11/month to $28/month. Interestingly enough, here in Irvine we pay just under $36/quarter for trash service. And it is not subsidized, but it is privatized. Somehow, this is not surprising.

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