Anonymous user
Proposition 13: Difference between revisions
no edit summary
imported>Tmccormick No edit summary |
imported>Tmccormick No edit summary |
||
| (38 intermediate revisions by 3 users not shown) | |||
Line 1:
[[File:Prop.-13s-howard-jarvis.jpg|thumb|right|250px|Proposition 13 backer Howard Jarvis, 1978]] '''Proposition 13''' (officially named the '''People's Initiative to Limit Property Taxation''') was an amendment of the Constitution of California
#Property tax (annual) limited to 1% of value.
#Assessments limited to increase of 2% per year from 1975 value, unless ownership changed or substantially redeveloped.
#State given authority over distribution of property tax revenues.
#2/3 majority of state legislature required to raise taxes.
#2/3 majority in local elections to increase special (dedicated taxes).
Line 20 ⟶ 26:
== Background / proposed motivations ==
[from [https://en.wikipedia.org/wiki/California_Proposition_13_(1978)#Background Wikipedia: "California Proposition 13 (1978)]."
Line 39 ⟶ 45:
In addition, during the early 1960s, there were several scandals in California involving county assessors. These assessors were found rewarding friends and allies with artificially low assessments, with tax bills to match. These scandals led to the passage of AB 80 in 1966, which imposed standards to hold assessments to market value, which caused a large number of California homeowners to experience an immediate and drastic rise in valuation, simultaneous with rising tax rates on that assessed value, only to be told that the taxed monies would be redistributed to distant communities. The ensuing anger started to form into a backlash against property taxes which coalesced around Howard Jarvis, a former newspaperman and appliance manufacturer, turned taxpayer activist in retirement.
== <br/> Consequences ==
==== Sales disincentives, less individual mobility, higher housing costs ====
Proposition 13 alters the balance of the housing market because it provides disincentives for selling property, in favor of remaining at the current property and modifying or transferring to family members to avoid a new, higher property tax assessment.
California has more rigidity and friction in both its housing market and in renting than other states; one study comparing California's market to that of other states found that between 1970 and 2000, tenure of owned homes increased by 10% and in renting by 19%, and attributed this change to Proposition 13.Other studies have found that increased tenure in renting can be attributed in part to rent control<span style="font-size: 10.8333px;"> </span> D.R. Mullins states that “prospects of increased property tax liabilities triggered by residence or business location changes likely constrain mobility and filtering in the housing and property markets.”
Moreover, evidence shows that because homeowners would allegedly keep their homes for longer, young households often rent for longer before buying a house. Because Proposition 13 could be a disincentive to sell, there is less turnover among owners near the older downtown areas, resulting in an upward pressure on price appreciation in these areas.
Proposition 13 reduces property tax revenue for municipalities in California. They are forced to rely more on state funding and therefore may lose autonomy and control. The amount of taxes available to the municipality in any given year largely depends on the number of property transfers taking place. However, since existing property owners have an incentive to remain in their property and not sell, there are fewer property transfers under this type of property tax system.
California also has high rates of migrants from other countries and states,which has contributed to more demand for housing, and it has low amounts of moderately priced housing due to the increased property tax liability after a sale.In effect, because the different tax treatment makes real estate more valuable to the current owner than to any potential buyer, selling it makes no economic sense.
==== Other taxes created or increased ====
Local governments in California now use imaginative strategies to maintain or increase revenue due to Proposition 13 and the attendant loss of property tax revenue (which formerly went to cities, counties, and other local agencies). For instance, many California local governments have recently sought voter approval for special taxes such as parcel taxes for public services that used to be paid for entirely or partially from property taxes imposed before Proposition 13 became law. These public services include: streets, water, sewer, electricity, infrastructure, schools, parks, police protection, firefighting units, and penitentiary facilities. Provision for such taxes was made by the 1982 Community Facilities Act (more commonly known as Mello-Roos). Sales tax rates have also increased from 6% (pre-Proposition 13 level) to 8.25% and even higher in some local jurisdictions.
This subsequently led to the passage of California Proposition 218 in 1996 ("Right to Vote on Taxes Act") that constitutionally requires voter approval for local government taxes and some nontax levies such as benefit assessments on real property and certain property-related fees and charges.
== Reform Proposals ==
this article is editable in box below, or by editing [https://docs.google.com/document/d/11Qatrl5XkCPFe9FN5u1I6UkGlJg-cgIxx9EqJbTfd0M/edit?usp=sharing this Google Doc]. <gdoc id="11Qatrl5XkCPFe9FN5u1I6UkGlJg-cgIxx9EqJbTfd0M"></gdoc>
== Reform-related Events / Forums ==
[https://www.facebook.com/events/191336211428796/ Prop 13 Panel] - December 10th, 2017, 3-5pm, in San Francisco<br/> [https://www.facebook.com/events/191336211428796/ https://www.facebook.com/events/191336211428796/].<br/> hosted by:
*[http://www.sfyimby.org/ San Francisco YIMBY Party]
*[[Yimbyaction.org|YIMBY Action]]
*[https://uniteddems.org/ United Democratic Club]
*[http://www.evolve-ca.org/ Evolve]
*[[Sfhac.org|San Francisco Housing Action Coalition]]<br/>
September 9th, 2017 (Saturday) -10:30am to 12:30pm.<br/> Evolve.ca Town Hall event. <br/> Where: First Congregational Church of Oakland, 2501 Harrison St, Oakland, CA 94612.<br/> [http://www.evolve-ca.org/town-hall-rsvp/ http://www.evolve-ca.org/town-hall-rsvp/]
October 19 or 26 - possible event being planned by YIMBY Action. <br/> Proposed: Lilia Luciano (of Sacramento tv channel) is moderating, with Kim-Mai Cutler, Evolve.ca, California Association of Realtors, and Howard Jarvis Taxpayers Association (original key sponsors of Proposition 13).
Line 51 ⟶ 95:
== References ==
*Abramsky, Sasha. "[https://www.thenation.com/article/have-california-voters-finally-had-enough-of-prop-13/ Have California Voters Finally Had Enough of Prop 13? After decades of strangling the state, the anti-tax revolt may be coming to an end]." ''The Nation, ''December 22, 2015.<br/> [https://www.thenation.com/article/have-california-voters-finally-had-enough-of-prop-13/ https://www.thenation.com/article/have-california-voters-finally-had-enough-of-prop-13/].<br/>
*Elkind, Ethan. "[http://legal-planet.org/2017/01/12/how-prop-13-has-wrecked-california/ How Prop 13 Has Wrecked California: Time to roll back the 1978 tax measure.]" Legal Planet, January 12, 2017. [http://legal-planet.org/2017/01/12/how-prop-13-has-wrecked-california/. http://legal-planet.org/2017/01/12/how-prop-13-has-wrecked-california/. ]<br/>
*California Legislative Analysts Office. "[http://lao.ca.gov/Publications/Report/3706 The Property Tax Inheritance Exclusion.]" October 9th, 2017.<br/> [http://lao.ca.gov/Publications/Report/3706 http://lao.ca.gov/Publications/Report/3706].<br/>
*Reisenwitz, Cathy. "[http://www.thebaycitybeacon.com/32740/289250/a/a-surprising-suggestion-for-the-prop-13-quagmire-guestopinion A Surprising Suggestion for the Prop 13 Quagmire [GuestOpinion].]" Bay City Beacon, May 22, 2017. [http://www.thebaycitybeacon.com/32740/289250/a/a-surprising-suggestion-for-the-prop-13-quagmire-guestopinion http://www.thebaycitybeacon.com/32740/289250/a/a-surprising-suggestion-for-the-prop-13-quagmire-guestopinion].<br/> ▼
*Levinson, Michael. "[https://medium.com/@michaellevinson_64108/landlords-and-heirs-why-prop-13-isnt-just-unfair-it-s-un-american-20a8597cb37b Landlords and Heirs: Why Prop 13 isn’t just unfair, it’s un-American.]" November 1st, 2017. [https://medium.com/@michaellevinson_64108/landlords-and-heirs-why-prop-13-isnt-just-unfair-it-s-un-american-20a8597cb37b https://medium.com/@michaellevinson_64108/landlords-and-heirs-why-prop-13-isnt-just-unfair-it-s-un-american-20a8597cb37b][https://medium.com/@michaellevinson_64108/landlords-and-heirs-why-prop-13-isnt-just-unfair-it-s-un-american-20a8597cb37b. .]<br/> .
*Wikipedia. "[https://en.wikipedia.org/wiki/California_Proposition_13_(1978) California Proposition 13 (1978)]." accessed 22 May, 2017, portions adapted to create initial version of this article. ▼
*Martin, Isaac William. ''The Permanent Tax Revolt: How the Property Tax Transformed American Politics''. Stanford University Press, 2008. <br/>
*McGirr, Lisa. [https://www.amazon.com/Suburban-Warriors-American-Politics-Twentieth-Century/dp/0691096112 Suburban Warriors: The Origins of the New American Right]. Princeton University Press, 2001 & new edition 2015. [https://www.amazon.com/Suburban-Warriors-American-Politics-Twentieth-Century/dp/0691096112 https://www.amazon.com/Suburban-Warriors-American-Politics-Twentieth-Century/dp/0691096112].<br/>
*Murphy, Katy. "[https://www.mercurynews.com/2017/12/11/giving-grandma-a-tax-break-to-get-more-homes-on-the-market-realtors-prop-13-ballot-proposal/ Giving Grandma a tax break to get more homes on the market: realtors’ Prop. 13 ballot proposal]." ''Mercury News, ''11 Dec 2017. https://www.mercurynews.com/2017/12/11/giving-grandma-a-tax-break-to-get-more-homes-on-the-market-realtors-prop-13-ballot-proposal/. <br/>
*Musgrave, Beth. "[http://www.kentucky.com/news/local/counties/fayette-county/article175496271.html Are those new neighbors driving up your property tax bill? Help could be coming]." ''Lexington Herald-Leader, ''September 26th, 2017. [http://www.kentucky.com/news/local/counties/fayette-county/article175496271.html http://www.kentucky.com/news/local/counties/fayette-county/article175496271.html].<br/>
*New York Times, Retro Report. "[https://www.nytimes.com/video/us/100000004711534/proposition-13-mad-as-hell.html Proposition 13: Mad as Hell]" (video, 12:16 mins). <br/> Oct 16, 2016.<br/>
*Phillips, Shane. “[http://www.betterinstitutions.com/blog/2015/07/prop-13-california-broken-property-tax-part-2 Prop 13, Part 2: How to Fix California’s Broken Property Tax Law.]” ''Better Institutions'' blog, July 1, 2015. [http://www.betterinstitutions.com/blog/2015/07/prop-13-california-broken-property-tax-part-2 http://www.betterinstitutions.com/blog/2015/07/prop-13-california-broken-property-tax-part-2].<br/>
▲*Reisenwitz, Cathy. "[
*Rosen, Kenneth T. "The Impact of Proposition 13 on House Prices in Northern California: A Test of the Interjurisdictional Capitalization Hypothesis." ''Journal of Political Economy'', Vol. 90, No. 1 (Feb., 1982), pp. 191-200.<br/> [http://www.jstor.org/stable/1831240 http://www.jstor.org/stable/1831240].<br/> Working paper, June 1980: [http://escholarship.org/uc/item/80t0102p [1]].<br/>
*Sexton, Terri A., Steven M. Sheffrin and Arthur O'Sullivan. "[https://drive.google.com/file/d/0B_E90AYG2sPDVVBMaTRzTmZRMFU/view Proposition 13: Unintended Effects and Feasible Reforms.]" ''National Tax Journal'', Vol. 52, No. 1 (March, 1999), pp. 99-111<br/> [http://www.jstor.org/stable/41789379 http://www.jstor.org/stable/41789379].<br/> [https://drive.google.com/file/d/0B_E90AYG2sPDVVBMaTRzTmZRMFU/view https://drive.google.com/file/d/0B_E90AYG2sPDVVBMaTRzTmZRMFU/view],<br/>
*Steurle, Eugene. ''The Tax Decade: How Taxes Came to Dominate the Public Agenda'', 1992, has some good prop 13 stuff. [https://books.google.com/books?id=zxMl-rQNkosC&pg=PA250&lpg=PA250&dq=Steuerle,+Eugene.+The+Tax+Decade&source=bl&ots=6HXCkic5f5&sig=Md9C3nu_kcUXGb8mCvJy2-kxgSc&hl=en&sa=X&ved=0ahUKEwjlyemWvIDYAhUT9WMKHc-MBh8Q6AEIWTAJ#v=onepage&q=Steuerle,%20Eugene.%20The%20Tax%20Decade&f=false Google Books]. <br/> [suggestion from Dr. Lisa Schweitzer, USC Dept of Planning [https://t.co/nBLedU61Ef lisaschweitzer.com]]<br/>
*Warner, Andy. "[https://ww2.kqed.org/lowdown/2016/01/20/the-taxpayers-revolt-how-proposition-13-changed-california-an-illustrated-explainer/ The Taxpayers Revolt! How Prop 13 Transformed California (An Illustrated Explainer).]" KQED News, January 20, 2016.<br/>
▲*Wikipedia. "[https://en.wikipedia.org/wiki/California_Proposition_13_(1978) California Proposition 13 (1978)]." accessed 22 May, 2017
See also: Proposition 13 Tax Subsidy mapping project: [http://yimby.wiki/wiki/Equity_Mapping_Project http://yimby.wiki/wiki/Equity_Mapping_Project].
[[Category:Politics]] [[Category:Housing]] [[Category:California Legislation]] [[Category:Development]] [[Category:Legislation]]
| |||