But first, the GOOD part of Prop 13:

Californians voted for Proposition 13 in 1978 to allow residents, especially seniors on fixed incomes, to stay in their homes rather than lose them due to rising property taxes. That’s what people voted for, and it’s a very good thing that needs to be kept.

And now, How Prop 13 was BAD for California in 13 Ways:

1. Corporations benefit. Two-thirds (2/3) of the total benefit of flattening property tax went not to residents, but rather to commercial/corporate properties – they don’t get sold and reassessed.
2. New homeowners get hurt. They pay more in property tax than long-term neighbors.
3. Disparity grows. Prop 13 requires a 2/3 vote to raise taxes, but maintains a simple majority vote to lower taxes. So the legislature lowered tax rates in boom years, benefiting primarily the richest of the rich individuals and corporations – and now the rest of us are stuck since 67% is needed to get fair taxes back.
4. Minority rule. Just one-third, 34 of 100 legislators can stop any budget dead in the water until their districts get greater benefits – and lower taxes.
5. Safeguard for the richest. That same one-third, 34 of 100 legislators can stall until their corporate and super-rich backers get greater benefits – and lower taxes.
6. Income tax swings. State budgets depend more on income tax, which is less stable.
7. Sales tax grows. Sales tax increases to almost 10% – hitting middle class, lower income, and even the affluent harder than the richest of the rich.
8. Housing market tightens. Long-time residents stay in their homes, and localities, in their rush to increase sales tax and decrease expenses, focus on retail malls and big box stores, rather than housing.
9. Goodbye services. City budgets are squeezed, and all residents feel the effects, on fire and police departments, libraries, parks, schools.
10. Parking fees and potholes. Both increase – as cities scramble for sources of revenue.
11. Opportunity shrinks. California’s schools went from being best in the nation to 47^th out of 50 in terms of per-pupil spending – and in educational opportunities offered.
12. Tuition hikes. Tuition fees have gone beyond the reach of many would-be college students – 32% hike this past year alone.
13. Kids and grandkids pay. The “no new taxes” mantra led to bonds funding everything from water quality and transportation to hospitals and schools – inadvertently promoting the philosophy, “We want it, but we don’t want to pay for it, so let’s put it on credit, and have our children and grandchildren pay!”

Bottom Line:

If you are young, or love anyone who’s young, Prop 13 does not love you!