Prop 13
Prop 13 was passed in 1978 as a way of reducing property taxes. Now, according to the amended state constitution, property tax rates could not exceed 1 percent of the property's market value and valuations couldn't grow by more than 2% per annum unless the property was sold.
Features of Prop 13
Features of Prop 13
- One percent rate cap. Prop 13 capped, with limited exceptions, property tax rates at once percent of full cash value at the time of acquisition.
- Assessment rollback. Prop 13 rolled back property values for tax purposes to their 1975-76 level.
- Responsibility for allocating property tax transferred to the state. Prop 13 gave lawmakers responsibility for allocating property tax revenues among local jurisdictions.
- Reassessment upon change of ownership. Prop 13 replaced the practice of annually reassessing property at full cash value with a system based on price at acquisition.
- Vote requirement for state taxes. Prop 13 requires any measure enacted for the purpose of increasing state revenues to be approved by 2/3 vote of each house of the legislature.
- Voter approval for local "special" taxes. Prop 13 requires taxes raised by local governments for a designated or special purpose to be approved by 2/3 of the voters.
