Alan Grosso, another frequent conservative initiative pusher, sponsored Measure 63, which prohibits State and Local governments from requiring building permits for residential or farm projects under $35,000 (with annual increases for inflation). The $35,000 limit renews every calendar year, potentially allowing for “bridging” projects over two years to reach a $70,000 maximum. The Measure does require compliance with height and setback limitations, does not allow for the addition of a new story to a house, and requires the use of a licensed electrical contractor. The Measure would reduce local government revenue by $4 million to $8 million per year and $450,000 to $750,000 for state revenue, largely from lost permit fees. It would also require disclosure of unpermitted additions to the buyer upon a sale of the property.

This statutory “happy homeowner” initiative appeals to do-it-yourselfers. Obviously, the increased risk of shoddy work and the attendant safety risks represent the biggest concerns with the measure. However, without a permit requirement, and despite language that purports to allow the government to increase the property taxes on a property after improvements, property tax revenues will decrease at least slightly. The application for a building permit generally clues the government in to reassess the value of the house, usually increasing the taxes owed and thus state revenues. So, as with most conservative measures on the ballot this fall, Measure 63 conceals some negative secondary effects under a popular exterior.

As always, the views expressed here are my personal opinions and do not necessarily represent those of my employer.