Property tax increases will only hurt California’s small businesses, workers, consumers and seniors, and further damage our state’s struggling economy. We don’t need more new taxes on top of the billions we’ve already been paying. Learn more by reading our fact sheets:
There is a continuous effort by Sacramento’s spending lobby to increase property taxes on both homeowners and employers. Special interests tried pushing a $6 billion property tax hike through the Legislature in 2015 and a $7 billion tax on the statewide ballot in 2016.
In 1978, the property tax rate throughout California averaged almost 3% of market value, with no limits on increases either for the tax rate or property value assessments. Owners’ tax bills skyrocketed, often beyond the homeowners’ ability to pay. Seniors and homeowners were faced with the real possibility of losing their homes because they couldn’t afford 50-100% increases in their property taxes.
Proposition 13 was put on the ballot in November of 1978 to stop these out of control increases by limiting property tax rates, increases and reassessments.
Passed in 1978 by the voters, in response to out of control property tax increases, Proposition 13:
- Sets the property tax rate at 1% of assessed value.
- Restricts annual increases of assessed value to not exceed 2% per year.
- Establishes property value for tax purposes at its purchase price and requires reassessment upon its change of ownership.
- Requires that local special tax increases be approved by voters with a two-thirds vote, including parcel taxes.
- Requires that state tax increases be approved by a two-thirds vote of each house of the Legislature.