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ACR-105 The 30th anniversary of the enactment of Proposition 13.(2007-2008)

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ACR105:v98#DOCUMENT

Amended  IN  Assembly  May 07, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Concurrent Resolution
No. 105


Introduced  by  Assembly Member Huff, Walters
(Coauthor(s): Assembly Member Adams, Anderson, Berryhill, Blakeslee, DeVore, Emmerson, Fuller, Gaines, Garrick, Jeffries, La Malfa, Maze, Niello, Sharon Runner, Silva, Smyth, Spitzer, Tran)

February 22, 2008


Relative to the 30th anniversary of Proposition 13.


LEGISLATIVE COUNSEL'S DIGEST


ACR 105, as amended, Huff. The 30th anniversary of the enactment of Proposition 13.
This measure would commemorate June 6, 2008, as the 30th anniversary of the approval of Proposition 13 by California voters.
Fiscal Committee: NO  

WHEREAS, On June 6, 1978, Proposition 13, officially titled the “People’s Initiative to Limit Property Taxation,” and popularly known as the “Jarvis-Gann Initiative,” was overwhelmingly approved by California’s voters, reducing property tax rates on homes, businesses, and farms, and capping the rate of increase in the future; and
WHEREAS, Prior to the adoption of Proposition 13, California’s raging inflation had sent property tax bills in California soaring so high that many families had to sell their homes because they could not afford to pay their taxes; and
WHEREAS, Prior to the adoption of Proposition 13, property tax assessments showed wider divergences than assessment disparities under the current acquisition-value system; and
WHEREAS, With the approval of Proposition 13, real property values were adjusted to a base value equal to the 1976 assessed value of that real property, thereby introducing an objective standard upon which real property would be taxed and ending the previous subjective standard for assessment that engendered the property tax assessment abuses that occurred in the 1960s and 1970s; and
WHEREAS, With the passage of Proposition 13, taxpayers, for the first time, were provided a measure of certainty with respect to their property taxes; and
WHEREAS, Following the passage of Proposition 13, property tax revenue flow has been 2.9 times more stable than pre-Proposition 13 property tax collections; and
WHEREAS, Following the passage of Proposition 13, the stability of property tax as a revenue source has allowed local governments to grow at a rate of almost 10 percent per year between 1980 and 1992, and even in a recession year, 1992, to grow at a rate of 7.9 percent; and
WHEREAS, Following the passage of Proposition 13, the statewide assessment average, including business properties, has been estimated at 55 percent with business properties, assessed at 75 percent of market value, paying a proportionally higher share than residences; and
WHEREAS, In the 30 years following the passage of Proposition 13, the average homeowner has saved tens of thousands of dollars in property tax payments, money that, if not for the passage of Proposition 13, would have fueled an even greater proliferation of state and local public bureaucracies; and
WHEREAS, Following the passage of Proposition 13, a spectacular entrepreneurial and commercial explosion was unleashed in the 1980s; and
WHEREAS, Following the passage of Proposition 13, California’s economic surge was the envy of the nation, with incomes in California growing 50 percent faster than in the nation as a whole, and with jobs growing at twice the national pace; and
WHEREAS, Since the passage of Proposition 13, proposed alternatives to Proposition 13 would have had a variety of unwelcome effects, including substantial tax increases for low-income and elderly homeowners; and
WHEREAS, Since the passage of Proposition 13, proposed revenue-neutral changes to Proposition 13 would have negatively impacted 92 percent of elderly property owners and would have resulted in tax increases of over 160 percent to 43 percent of Los Angeles County homeowners; and
WHEREAS, Since the passage of Proposition 13, voters’ 2-to-1 rejection in 1992 of Proposition 167 suggests that the split roll alternative to the current system, in which business would pay property taxes at a rate higher than that imposed on residential properties, finds little favor with voters; and
WHEREAS, The passage of Proposition 13 was the impetus for the conservative, anti-big-government tide in America, a political earthquake whose jolt was felt not just in California, but across the nation and in the nation’s capital, as a prelude to the Reagan income tax cuts in 1981; and
WHEREAS, Proposition 13 incited a nationwide tax revolt at the state and local levels, within five years of its passage, nearly one-half the states strapped a similar sensible straitjacket on politicians’ tax-raising capabilities and almost all of these tax limitation measures remain the law of the land today; and
WHEREAS, Proposition 13 has become a nationwide symbol for taxpayer revolt and for citizens exercising control and power over their governance; and
WHEREAS, Friday, June 6, 2008, marks the 30th year following the voters’ approval of Proposition 13; now, therefore, be it
Resolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature, in recognition of the impact Proposition 13 has had on the State of California, formally commemorates June 6, 2008, as the 30th anniversary date of Proposition 13; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author of this resolution for appropriate distribution.