Two-thirds of California voters consistently tell pollsters that they think Proposition 13 is a good thing, but even with more than 48 years of constant support, Proposition 13 remains unpopular among politicians and bureaucrats who want higher property taxes.
But the limits that Prop. 13 imposes on property taxes can hardly be considered draconian. California ranks 18th out of 50 states in per capita property tax collections, belying the notion that it has “starved” local governments. True, even though California is not a low property tax state when compared to its number one ranking in income tax rate, state sales tax rate, and gas tax, it’s no wonder that our property tax appears moderate.
The secret about Prop. 13 hiding in plain sight is that it has been a boon to local governments. While providing security to homeowners, it simultaneously guarantees stable – and almost always increasing – revenue to local governments. Statewide, assessed value of property generally increases in the 4 to 5 percent range. And even in years when market values decrease, Proposition 13 acts as a shock absorber, stabilizing revenue because of the difference between taxable value and market value.
The 2% limit on annual increases…
