Proposition 13 California

About Proposition 13 California

California Proposition 13, passed in 1978, was a landmark property tax limitation. The initiative capped property tax rates at 1 percent of assessed value and limited assessment increases to 2 percent per year unless the property is sold. When a property is sold, it is reassessed at market value. Proposition 13 created a system where identical houses can have dramatically different tax bills depending on when they were purchased. The measure was driven by rapidly rising property values and taxes in the 1970s. Howard Jarvis led the taxpayer revolt. Proposition 13 severely reduced local government revenue, particularly for schools. California school spending fell from among the highest in the nation to below average. Proposition 13 remains politically untouchable in California politics.