Prop 13: A Lamprey on the Necks of California Youth?
From Jordana Thigpen in today's San Francisco Sentinel,
My plan this week was to address the 10% raise which United Educators has requested.This has been my personal feeling for years. There are plenty of people out there who can very well afford to be contributing more to the public school system than they currently are, but will not have to... All because of Prop. 13 and having owned their homes for many years.
Yet it is delusional to write about the problems that our public schools have in San Francisco, and in the State generally, without addressing Proposition 13. Yes, that Proposition 13 - the 27-year-old, $3.2 billion gorilla in the room, which no elected has the courage to address. Like most 27-year-olds, Prop 13 is about to experience its Saturn Return. Astrologically, this portends great change.
Are you sick and tired of being sick and tired? So are our public schools. Reforming Proposition 13 is the only way to save our State and get our educational system back on track.
Proposition 13 arose the way that most revolts do - from corruption. A series of scandals involving county assessors made the public lose faith in the process. The counties weren't assessing properties uniformly (partly because of incompetence; San Francisco actually had the worst performance record in the 1960s.) This, and resulting inequities between poor and wealthy school districts, ultimately led to the Serrano v. Priest series of Supreme Court decisions throughout the 1970s. Yet the public was evenly split in the months leading up to the June 1978 primary, uncertain as always surrounding tax reform.
But then Los Angeles County announced it intended to do huge assessment increases in the new fiscal year, and the public hobbled our schools forever by passing Prop 13. We can cut a bit of slack for the 1978 vote. California voters in the 1970s were suffering from the afterburn of the 1960s, as well as having to deal with hellish orange and ochre shag-carpeted aesthetics at every turn. Presumably, it took a toll.
But it's pretty sad that the public didn't heed the prescient warnings of the opposition at the time: that Prop 13 would, among other problems: (1) subsidize commercial property owners; (2) make home ownership prohibitively expensive and create a disincentive for transfer; (3) unsustainably lay the tax burden on the disproportionately smaller class of young working people; (4) effectively destroy home rule for municipalities; and (5) siphon the blood of the school districts.
But Ms. Thigpen's suggestion protects those who need it, "Prop 13 protects senior and disabled homeowners, whose homes are still assessed at the 1975-1976 rate. It is extremely important that this remain a feature of any reform. In fact, as Baby Boomers evolve, this feature of Prop 13 will become critical."
California Proposition 13 [Wikipedia]
Professional house flippers [SFHomeBlog]

6 Comments:
Of couse, if Prop 13 is repealed, it will have several unintended consequences, including increasing the rate of gentrification.
What do you think will happen to long-time home owners when their tax rates go up 4, 5, or 6 times their current rate?
What will happen in Bernal Heights, let alone Bayview/Hunters Point?
You will see an astonishing turnover in demographics.
And personally, I brought a house on the south side of SF 10 yrs. ago.
I can't afford to pay a stepped up prop tax -- it would go from around $3500 to $12,000 or so.
So I will be selling my house and transfering to my company's Florida office (where I have no great desire to live) if that happens.
One more thing -- if you look at inflation adjusted per student spending in California, it has more than doubled since 1978.
Not in nominal terms, in real inflation adjusted terms. Think we're getting twice as good an education as in 1978?
I don't think dollars spent is the issue, but that's another lonf discussion.
Unquestionably... There is no easy way to solve this problem now... Perhaps just to repeal Prop.13 for purchases beginning on an arbitrary date (like Jan 1, 2007)?
The consequence of that would be a huge jump in sales leading up to that deadline, however...
Again, no easy answers, but worth thinking about.
Since the municipalities can't find other ways to come up with the $$, we need to look at every available option.
Prop 13 isn't just about how California schools went from first to worst (http://www.pbs.org/merrow/tv/ftw/prop13.html)...
It's also about how cities fight each other to attract Big Box Stores and Auto Malls, and to try to dump citizens on each other.
How broken is it that cities -don't- want to attract residents because residents are a drain and take away space from retail.
Thanks to Prop 13, we have a Best Buy in East Palo Alto, Mountain View, and Sunnyvale - is that really necessary?
And to the person who said that he can't afford a prop tax change of $3500->$12000, why is it fair that the person who moves in next door to you tomorrow pays $12000 while you pay $3500 for the exact same unit?
Prop 13 should be repealed and replaced with an equivalent state tax credit if you meet income restrictions. This will automatically take care of the poor homeowners.
Income and not age should be a determining factor. If you are elderly and rich you better fork up the dough to pay for the future. Because the future is what is paying your social security and keeping you alive on the miracle drugs.
If you would have an annual property tax bill of $12,000, then your house is valued at 1.2 million? The repeal of prop 13 would curb the ridiculous growth of home prices in the state, maybe your house would only be worth 7-800k, but your property taxes would be more reasonable. Why should more recent homeowners subsidize the growth of your home investment? How is it that per pupil spending has doubled as you claim, but CA's ranking in the nation for that statistic has almost completely reversed at the same time (from top to bottom of the rankings)?
I hope that you are still around, Matt. I concur with you 100%....Prop 13 is ruining the State...
In contrast: My wife and I and our adult daughter bought a condo in Cambridge, Mass, a year ago, a mile from Harvard, where she is a grad student...
We paid $442,500.... Our tax bill that we just got, for fiscal 08-09.... : $1850 per year, after the $1600 owner-occupier credit.... (They "fully assess" based on the sales price.!) That means that, for O/O the tax bill is 35% of what it would be in San Francisco.!!!!!)
I bought a 4 unit place in 1975, when I was 31. It is worth, now, 1.6M.... My tax bill: $2,000 a year.!!!!!
I think JarvisGann needs to be significantly modified. Perhaps: To the base, as currently computed: add the change in the CPI, annually, or some percentage thereof, with a ceiling, perhaps.
2% a year is a real scam on the general population.
By the way: Cambridge, Mass. spends over twice as much, per pupil, per year, as does SF....
We are treating our segment that needs public schools....like beggars and "unwashed"... We think that's a good thing, etc.??? Sounds like Dickens' London.
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