Homeowners want to keep their homes, so they do not want too high of a property tax. Proposition 13 was a referendum, which “imposed a 2 percent limit on yearly increases in assessments” (Haberman 2016). Prop 13 also cannot skyrocket the property taxes without two thirds vote from the state Legislature: “Then it required future tax hikes of any form to pass the state Legislature by a two-thirds vote” (Friedersdorf, 2018). The state Legislature includes the Senate and the House of Representatives. The state Legislature is responsible for making laws.
Howard Jarvis is a business man who saw keeping a home is essential: “His words echoed those of Howard Jarvis, a pugnacious businessman who was a principal architect of Proposition 13, formally called the People’s Initiative to Limit Property Taxation” (Haberman, 2016). A referendum is a proposal, which voters can vote on a political question. The political question is keeping homes with Proposition 13. This was beneficial because homes’ property taxes were not rising too high as the years passes, and older folks are happy not to lose their houses especially those houses purchased in 1975. As the years goes by, the property values increase, but Prop 13 would not allow property taxes to increase even though the property value increases yearly.
The struggle now comes in allocating the revenues and figuring out what to tax to compensate for the loss of revenues from property taxes: “Right away, property-tax revenues plummeted nearly 60 percent” (Haberman 2016). Although the debate was the loss of revenue for the local and state government when there is a cut back in property taxes, it is not a loss of revenue when Sacramento not the local government handles finances for the schools: “As cities and counties struggled to raise revenue on their own, a good deal of power shifted from them to Sacramento, the state capital” (Haberman 2016). In California, school is important. In addition, education can be funded through other venues not merely revenues from the property taxes. Revenue comes from gas and sale tax. Education is valuable in California, so public schools have fundraisers such as a bake sale or school merchandise sale.
Burks, Megan (2018, June 5). Forty Years Later, Proposition 13 Is Proof Your Vote Matters. Retrieved from https://www.kpbs.org/news/2018/jun/05/40-years-later-proposition-13-proof-your-vote-does/
Coupal, Jon. (n.d.) L.A Teachers’ Strike and Prop 13. The New York Times. Retrieved from
Friedersdorf, Conor. (2018, June 4). After 40 years, Proposition 13’s failures are Evident. Los Angeles Times. Retrieved from https://www.google.com/amp/s/www.latimes.com/opinion/op-ed/la-oe-friedersdorf-prop-13-20180604-story.html%3foutputType=amp
Haberman,Clyde. (2016, October 16). The California Ballot Measure that Inspired a Tax Revolt. The New York Times. Retrieved from https://www.google.com/amp/s/www.nytimes.com/2016/10/17/us/the-california-ballot-measure-that-inspired-a-tax-revolt.amp.html