Measure PVE Proposes the Same Increase for Every Palos Verdes Estates Home, but the Financial Impact Varies

What does it cost to own a home in Palos Verdes Estates each year after the purchase? Most buyers start with the 1% general levy and the assessed value. There is another charge on the property tax bill that is independent of the purchase price, and on November 3, 2026, voters will decide whether to increase it and how that cost will be distributed among homeowners.

That line is the city's police parcel tax. Measure E has funded it since 2018, and it expires June 30, 2027. Its proposed replacement, Measure PVE, would raise the tax by the same $683 a year on every parcel, whatever the home's size. A flat increase sounds equal, but its impact varies depending on what each homeowner currently pays. The proposed increase would apply entirely to the fixed portion of the parcel tax, resulting in a larger percentage increase for smaller homes. The entire increase would land on the part every parcel pays equally. That is a deliberate reversal of the formula voters turned down in June.

A tax line that ignores what you paid

Los Angeles County calls this kind of charge a direct assessment. The Treasurer and Tax Collector describes it as a non-ad valorem, per-parcel charge printed on the Annual Secured Property Tax Bill, and lists voter-approved special taxes among its examples. The city puts it more simply. The parcel tax "is not based on property value."

So in a transaction, the parcel tax works differently from the rest of the bill. A buyer who pays $3 million and a buyer who pays $6 million for homes of the same size carry the same police parcel tax. The purchase price resets the ad valorem portion. It has no effect on this line. The only inputs are the parcel itself and the square footage of its building improvements.

If you are estimating carrying costs on a Palos Verdes Estates home right now, you are pricing across an expiration date. The current rate runs through June 30, 2027. If Measure PVE passes, the new rate begins July 1, 2027. A buyer who closes this winter will pay one formula on the first full tax bill and possibly a different one on the second.

How Measure PVE Affects Homes of Different Sizes

Palos Verdes Estates voters have now seen three versions of this tax. The difference between them is where the weight sits.

Measure PF was a citizen initiative. It raised the base and tripled the square-footage rate, so the bill climbed steeply as homes got bigger. The Daily Breeze reported that it needed only a simple majority and still drew just 41.28% yes as of the Friday afternoon count after the election. Speakers at the council meeting that followed said its size had sunk it.

Measure PVE leaves the square-footage rate at Measure E's 20¢ and puts the entire increase on the base, which roughly triples from $342 to $1,025. The ballot question also carries a 2% annual adjustment.

The Same $683, Three Different Percentages

Here is the published formula applied to three home sizes. The middle row is the city's own example for a median-sized home of about 2,745 square feet. The other rows are our arithmetic using the same rates.

These are first-year figures, before any annual adjustment.

Compared with Measure E, the smaller home's bill more than doubles and the large home's rises by less than half. Compared with what PF would have charged, the large home pays less than half as much under PVE. Measured against PF, the change matters most to large homes. Measured against today's bill, it matters most to small ones.

The share of the bill that every parcel pays equally also changes. For the median home, the flat base is about 38% of the Measure E bill. Under PVE it would be about 65%. For a typical home, the tax would move from mostly following size to mostly following the parcel.

Why The Council Chose Flat

This was not the only version the council had in front of it. The draft ballot question attached to the July 28 agenda packet showed a $450 base plus 39¢ per square foot. At the meeting, Councilmember Craig Quinn moved and Mayor Michael Kemps seconded an amendment changing the formula to $1,025 plus 20¢. It carried 3–2, with Quinn, Kemps and Derek Lazzaro in favor and Councilmembers Lozzi and David McGowan opposed. For a median-sized home, the two versions come out within about $55 of each other. The bigger difference is at the ends. At 1,500 square feet the draft would have charged about $1,035, while at 6,000 square feet it would have charged about $2,790.

The city's FAQ gives the reasoning. "Police services provide a community-wide benefit and are not used based on the size of a home," so the measure sets a per-parcel base while "keeping Measure E's existing 20¢ per-square-foot rate unchanged."

The vote threshold also explains the design. Measure PF was a citizen initiative and needed a majority. A council-placed special tax needs two-thirds. In June, as the Daily Breeze reported, Lazzaro said "It's hard to get 66% of Americans to agree that the sky is blue these days," and that because the tax "must appeal to 66% of PVE voters," it needed to be simple and "understandable. Obviously PF didn't pass that test." "Every parcel pays $683 more" fits in one sentence. Explaining PF took a calculator.

The city's record at the two-thirds bar runs both ways:

• Measure D, reported in March 2017: a 12-year extension for fire suppression and paramedic services that drew nearly 60% support and fell short of two-thirds.
• Measure E, April 10, 2018: 3,940 yes votes to 1,770 no, about 69%.
• Measure PF, June 2, 2026: below 42% at a simple-majority threshold, per the Daily Breeze count.

The LA County Registrar's final list of ballot measures names Kemps, Quinn, Ken Feldman, John Nendick and Mark Saroyan as supporters of Measure PVE and shows no opponents submitted.

What Sits Behind The Number

The tax is large because the city has few other revenue sources. Palos Verdes Estates receives about 11¢ of every property tax dollar its homeowners pay. It has very little commercial property and levies no hotel, sales or utility users taxes. It also runs the only independent police department on the Peninsula. Rancho Palos Verdes, Rolling Hills and Rolling Hills Estates contract with the Los Angeles County Sheriff's Department.

The Daily Breeze reported in September that the police budget for fiscal year 2026–27 is $8.7 million, with $3.6 million covered by the general fund. City Manager Kerry Kallman said the city could face a $6.6 million shortfall in the 2027–28 budget without Measure PVE. Measure E brings in about $5.1 million a year, roughly 20% of general fund revenue. The FY 2026–27 adopted budget has a structural deficit of about $1.5 million, balanced with reserves. Measure PVE would raise about $8.7 million a year, with $7.7 million restricted to the police department and $1 million to paying down pension liability.

For buyers, the trade-off on either side of November 3 is easy to describe and hard to price. If the measure passes, the parcel tax line is set through June 30, 2033, with a per-parcel base that weighs most, relative to today, on smaller homes. If it fails, Measure E still expires June 30, 2027. As the September Daily Breeze report described it, the council has already been modeling hiring freezes, reduced landscape maintenance and other cuts. The June story noted that if nothing is on a ballot, the next consolidated election is March 2028.

FAQ

Would owners pay both Measure E and Measure PVE? No. The city says Measure PVE extends Measure E at a new rate starting July 1, 2027, and owners would never pay both.

Does a higher purchase price raise the parcel tax? No. The tax is calculated per parcel plus building square footage, not on value, and the county bills it as a direct assessment.

Where can I check the official numbers? The city's Measure PVE page has the ballot question, the formula and the median-home example. Actual amounts depend on each parcel's characteristics and building square footage.

If you are buying or selling in Palos Verdes Estates this fall, the parcel tax is one of the carrying costs a buyer will look at closely, and the right figure depends on the home's square footage and the outcome on November 3.

Steinbeck Homes can include both the current and proposed parcel tax figures in your home's valuation, so you know the full annual cost before you price or make an offer. Request a Home Valuation to get started.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.