My assumption is that the goal of the state is to maximize tax revenue.
Total California real estate is worth about $4.4 trillion*. A 1% drop in real estate tax revenue “costs” the state about $440 million annually. If this $2 billion “investment” can make a 1% difference it would pay for itself in about 5 years.
* I believe this is the taxable value of California property in 2010, not the fair market value. I might be mistaken. If it is the fair market value these figures won’t add up due to prop 13.
