The Hidden Impact of Measure A on Los Gatos, CA Property Values

While often viewed simply as a tax item, Measure A (Los Gatos-Saratoga Union High School District Parcel Tax) acts as a primary "insurance policy" for local real estate values. By funding core academic programs that keep LGSUHSD ranked in the top 1% nationally, Measure A creates a "value floor" for homes in the district, insulating them from broader market corrections. Crucially, many seniors are unaware they may qualify for a full exemption from this tax, a key detail for downsizers in the area.

What is Measure A? (The Real Estate Context)

In the context of Los Gatos property values, "Measure A" primarily refers to the Parcel Tax renewal for the Los Gatos-Saratoga Union High School District (LGSUHSD).

• The Cost: A flat parcel tax levied on property owners (approximately $128/parcel annually, adjusted for inflation).
• The Purpose: It generates millions locally to fund advanced math, science, and engineering programs, retain top-tier teachers, and maintain small class sizes at Los Gatos High and Saratoga High.
• The Confusion: Do not confuse this with the Santa Clara County Measure A (Affordable Housing Bond or Sales Tax increases). While those affect your overall tax bill, the School District Measure A is the one directly tied to your home's resale desirability.

3 Hidden Impacts on Your Home Value

1. The "School Premium" Firewall

Real estate data consistently shows that homes in top-rated school districts sell for a premium of 20-30% over neighboring areas with average schools.

• • The Hidden Impact: Measure A does not just buy textbooks; it buys stability. During market downturns, neighborhoods with independently funded, high-performing schools tend to retain value better than those reliant solely on state funding.
  • The Stat: Los Gatos High School consistently ranks in the top tier of California schools. This ranking is a primary driver for the $3M+ entry-level price point in neighborhoods like the Almond Grove and Edelen District. Without Measure A, program cuts could threaten this ranking, directly eroding that "school premium."

2. The "Senior Exemption" Loophole

Many long-term Los Gatos residents are sitting on a hidden savings opportunity that affects their net holding costs.

• • The Detail: Measure A typically includes an exemption for seniors (65 years or older) who occupy the parcel as their principal residence.
  • Why it Matters: If you are a senior looking to sell, ensuring you have claimed this exemption can lower your holding costs while you prepare the home for market. If you are a buyer representing a senior parent, this exemption effectively lowers the "carry cost" of a Los Gatos home compared to other municipalities without such waivers.

3. Fungibility & Curb Appeal

While Measure A funds often go to "core academics" (teacher salaries, STEM programs), this creates a "fungibility" effect for the rest of the district's budget.

• • The Mechanic: Because Measure A covers expensive academic line items, the District's general fund is freed up for facilities and grounds maintenance.
  • The Result: The pristine condition of Los Gatos High’s front lawn and historic facade—a visual landmark for the town—is indirectly supported by this funding. This "civic curb appeal" contributes to the village charm that supports property values in the downtown core.

FAQ: Measure A & Los Gatos Real Estate

Q: Does Measure A increase my property taxes indefinitely? A: No. Most parcel taxes like Measure A are voted in for a specific term (e.g., 8 or 9 years). They must be renewed by voters to continue. This gives homeowners a regular "check and balance" on the tax.

Q: Is the tax based on my home's value? A: No. Unlike ad valorem property taxes (which are based on assessed value), Measure A is typically a flat parcel tax. Whether your home is worth $2M or $10M, you pay the same flat rate. This makes it a relatively low-impact tax for high-value luxury estates in Monte Sereno or the Los Gatos hills.

Q: How do I check if a specific home is subject to Measure A? A: If the property falls within the LGSUHSD boundaries, it is subject to the tax. We recommend checking the specific parcel APN on the Santa Clara County Tax Assessor’s website or contacting our team for a disclosure report.

For Los Gatos homeowners, Measure A should be viewed less as a tax and more as a community HOA fee. It funds the specific amenity—world-class education—that maintains the waiting list of buyers trying to move into our town.

Are you looking to buy or sell in the Los Gatos School District? Contact the Bouja & Swenson Group today for a detailed breakdown of local tax benefits and hidden value drivers.