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For people like myself who aren't familiar with the history of California's constitutional reforms, Wikipedia describes this "proposition 13" as follows: "The

For people like myself who aren't familiar with the history of California's constitutional reforms, Wikipedia describes this "proposition 13" as follows: "The proposition's passage resulted in a cap on property tax rates in the state, reducing them by an average of 57%. In addition to lowering property taxes, the initiative also contained language requiring a two-thirds majority in both legislative houses for future increases in all state tax rates or amounts of revenue collected, including income tax rates. It also requires two-thirds vote majority in local elections for local governments wishing to raise special taxes." -- http://en.wikipedia.org/wiki/California_Proposition_13_%281978%29 http://en.wikipedia.org/wiki/California_Proposition_13_%2819...

grellas 17y ago
Just to clarify further: In 1978, Californians voted a radical roll-back in property taxes when they enacted Prop 13. This proposition also stipulated that every person owing real property got a baseline valuation (either its fair market value in 1978, when Prop 13 took effect, or its fair market value on the date of any transfer upon its sale), from which the tax could only increase at a maximum of 2% per year. Thus, companies like HP, which owned vast tracts of valuable property in prime areas, have reaped huge benefits from this cap because they are effectively paying property taxes on values from a different era altogether. Young couples who bought small condos within the past 5 years are also paying far more in property tax than upper middle class persons living in fancy suburbs (those who have held their homes since 1978). Yet, in spite of the obvious inequities that have resulted, voters won't even touch any attempts to repeal Prop 13 or even to enact special propositions that would put commercial property owners on a separate, higher-taxed path. The reasons, I think, are those I set forth in my comment above - they don't trust what public officials will do with an expanded taxing power.

grellas 17y ago

Just to clarify further: In 1978, Californians voted a radical roll-back in property taxes when they enacted Prop 13. This proposition also stipulated that every person owing real property got a baseline valuation (either its fair market value in 1978, when Prop 13 took effect, or its fair market value on the date of any transfer upon its sale), from which the tax could only increase at a maximum of 2% per year. Thus, companies like HP, which owned vast tracts of valuable property in prime areas, have reaped huge benefits from this cap because they are effectively paying property taxes on values from a different era altogether. Young couples who bought small condos within the past 5 years are also paying far more in property tax than upper middle class persons living in fancy suburbs (those who have held their homes since 1978). Yet, in spite of the obvious inequities that have resulted, voters won't even touch any attempts to repeal Prop 13 or even to enact special propositions that would put commercial property owners on a separate, higher-taxed path. The reasons, I think, are those I set forth in my comment above - they don't trust what public officials will do with an expanded taxing power.