Prop 13

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Proposition 13 is a constitutional amendment prohibiting the reassessment of property values due to retrofitting work, proposition 13 came about around the 1970’s, the “region era”. Back then he proposition lowered property taxes by rolling back property values to their 1975 value and restricted annual increases in assessed value of real property to an inflation factor, not to exceed 2% per year. It also prohibited reassessment of a new base year value except upon change in ownership or completion of new construction. In addition to lowering property taxes, the initiative also contained language requiring a two-thirds majority in both legislative houses for future increases in all state tax rates or amounts of revenue collected, including income tax rates. It also requires a two-thirds vote majority in local elections for local governments wishing to raise special taxes. Proposition 13 received an enormous amount of publicity, not only in California, but throughout the United States

In recent years California passed proposition 13. According to Wikipedia “85% of California” voted yes on proposition 13. The financial crisis in California grew worse this week as “state controller John Chiang warned that if legislators and Governor Arnold Schwarzenegger fail to come up with a budget-balancing package, he would begin paying California's bills with IOUs on.” California has only done this once since the Great Depression. One obvious cause is the deep recession, which has caused tax revenues to plunge for all states. But California's woes have a set of deeper reasons: direct democracy run amok, timid governors, partisan gridlock and a flawed constitution have all contributed to budget chaos and people in pain. And at the root of California's misery lies Proposition 13, the anti taxe measure that ignited the Reagan Revolution and the conservative era. In Washington, the Reagan-Bush era is over. But in California, the conservative legacy lives on. The people of...
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