Posted on 06/29/2009 7:37:27 AM PDT by SmithL
About this time every year, as the Legislature and governor wrestle over how to pass the state budget, somewhere, somebody blames Sacramento's stalemate - and the state of the California's mediocre schools and crumbling roads - on Proposition 13.
The wail usually echoes unanswered for a simple reason: Thirty-one years after California voters overwhelmingly passed the law that fixed the rate of property tax increases and required a two-thirds majority of the Legislature to raise taxes and approve state budgets, polls show that Prop. 13 is as popular as ever.
But this year, with California and the nation in the throes of the worst economic crisis in decades, some provisions of the 1978 measure - which curbed revenue for key state programs, particularly public education - may be open for discussion.
No changes just yet; just discussion.
One major challenge: There is no roadmap for changing Prop. 13. While the measure inspired a popular revolt against property taxes in the years after it was enacted, no other state has the same mix of property tax limits and the two-thirds majority required to pass budgets and increase taxes.
Although voters in Massachusetts and Oregon approved laws inspired by Prop 13, those measures don't face the same hurdles.
"No other state has exactly the same combination as California. And the problem is that they're all connected," said Nick Johnson, director of the State Fiscal Project for the Center on Budget and Policy Priorities in Washington, D.C. "You have to start untying some of these knots."
Californians will have the chance to debate Prop. 13 beginning next month, when the California Tax Commission is expected to issue a report on the state's tax system that participants say will include some game-changing proposals.
(Excerpt) Read more at sfgate.com ...
Yes, that’ll be awesome. With the housing market in the dumps, let’s increase taxes!
I see they learned nothing from their increase of the Vehicle License Fee + Sales Tax.
Do you know why FR was down? Thanks.
Just endless scheming to find ways to override the will of the people so they can scalp productive and responsible citizens a little closer.
The California Supreme Court has refused to consider cases; challenges to Proposition 13 were rejected by the U.S. Supreme Court in 1992. The basis of the challenges was unequal tax charges on similar neighboring properties. In 2004 the California Teachers Association began gathering signatures for a ballot proposal to raise the property tax rate on commercial properties.
When is it that CA is going to fall off into the ocean?
At the time Prop 13 was enacted my Mother was paying more annually in property taxes than she had in payments to buy her "free-and-clear" home. That kind of taxation combined with trying to live in an inflated economy on a slender fixed retirement income spelled disaster for many people like her. Property taxes in CA combined with very high sales taxes and income taxes are devastating.
"Small changes" to Prop 13 will merely be the camel's nose under the tent. If any changes are allowed they'll keep at it until it's repealed.
In 2003, I posted that I wasn’t worried about changes or a repeal of Prop 13 because the “fee” loophole was jacking up my property taxes very nicely on its own.
But by 2005 I started beating the drum that we would see them try to repeal Prop 13 within 10 years.
This is a full court press, folks. In less than one week, we’ve seen basically the same story in the LA Times, TIME, and now here in the SF Chronicle that if we only eliminate Prop 13, all will be well.
We’re going to have to fight to the death on this.
“But by 2005 I started beating the drum that we would see them try to repeal Prop 13 within 10 years.”
You must be a youngster because the political class started trying to repeal Prop 13 the day after I voted for it. 2005 is a little late, but we’re glad to have you on our side!
California would enjoy a 40 billion dollar surplus just by cutting state pensions in half, social services to illegal aliens, and stop welfare fraud.
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