With our state once again in fiscal crisis,
Prop. 13 often gets revisited as a point of reference. A Sacramento Bee editorial some time back
raised a provocative analysis of Prop. 13’s long-term impact, and it bears
repeating.
The piece said that nearly 40 years ago
voters passed Prop. 13 to curb runaway property taxes. But “little did they
suspect they also were weakening their own ability to … control government.”
The Bee’s editorial pointed out that as a
control on property taxes, Prop. 13 has been a great success. It stopped the
inflation-driven rise in property taxes that caused tax bills on homes to
skyrocket.
“But that was obtained at a big price — in
tax fairness, in lost services and declining schools, in distortions in land
use.”
The Bee asked: “If California set out to redesign its tax
system, would even Prop. 13’s most avid defenders choose to re-create what we have
now?”
It pointed out
that as a result of Prop. 13, big houses in the wealthiest neighborhoods get
tax bills lower than starter homes bought last week by young families.
And that established firms pay lower taxes
than upstart competitors down the block.
Plus, power was moved from local communities
to the state Capitol, which now controls how money is divided among schools,
counties, and cities.
The Bee claimed this adds to cynicism and
discontent. It also adds to the state’s dire financial situation.
Sounds right.
