What is Proposition 13? What is proposition 13 1978? What is proposition 13 2020? In this video, I discuss the difference between the two proposition 13 bills that are on the table in 2020. Proposition 13 1978 has to do with property taxes and Property 13 2020 has to do with school bonds.
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Proposition 13 California
Proposition 13 was approved by California voters in June of 1978 and limits the tax rate for real property (real estate) to 1% of the full cash value of such property. In layman’s terms, this keeps your property taxes from adjusting each year to the value of the home and instead limits the annual increases to a maximum of 2% per year.
Proposition 13 school funding
The Proposition 13 on the March 3 ballot is a $15 billion school construction bond with interest costs that jumps the figure to $27 billion. This is a general obligation bond which will be repaid out of the state’s general fund over 35 years at a cost to taxpayers of $740 million annually. This $740 million must be paid before any other state programs can be funded, including public schools, prisons and Medi-Cal.
Local school districts must pass local school bonds in order to generate the matching funds required to get any of the state bond money. Unlike state bonds, local bonds always come with a tax hike, and, in the case of school bonds, it is always a property tax. This will make home ownership more expensive at a time when only about 25% of Californians can afford a median-priced home.
What is Prop 13 Repeal?
The prop 13 repeal in California would remove the cap of annual increases to your property taxes on commercial and industrial property valued under $3M causing you to pay a tax rate based on the current value of the property and not a tax rate based on when you purchased the property that is currently in place. The prop 13 repeal will NOT affect the property taxes on your current primary residence. This will only affect commercial and industrial properties.
Do you have questions about prop 13, california proposition 13 affects, proposition 13 protection or split roll proposition 13? If so, please comment below or contact me directly.
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