Proposition 13, passed by voters in 1987, caps the annual property tax increase to 1-3%, or something like that. It’s fair to older people, who can count on a steady property tax increase, and won’t get boosted out of their home because their fixed income can’t cover the rising property taxes.
But it’s unfair to new buyers, and it has caused CA schools to have one of the lowest fundings in the nation. Our schools are a mess because of this.
Warren Buffett has criticized this Prop too. He says he pays less in taxes on his $3 mill home in Laguna Niguel than his $100K house in Omaha, NE. Taxes in Omaha, NE are 3%, and here they are close to 1%.
