Proposition 13 - Property Tax

[bruindoctor]

What is the name of your state? California

I was wondering if you guys can help me understand what are the benefits of Proposition 13. I'm also willing to hear the harmful consequences of the referendum. Which do you guys feel outweigh? The pros or the cons?

This is what I currently understand of the proposition:

Pros:

• Limited uncontrolled property taxes to 1% of the property value which could only increase a maximum of 2% each year.

• Allows senior citizens that are living on their savings, social security, pension, etc. to continue living in their homes that they bought many years ago.

• Attracted many businesses to the state which generates much needed sales tax revenue.

• Forced governments to evaluate their budgets more carefully to prevent overspending and wasting of valuable funds.

Cons:

• Unequal property taxes in many cities. Neighbors may be paying significantly more or less than you are for property that is valued at around the same prices.

• Less funding for local public services such as police, fire, and schools.

What would be the effect on property values if Proposition 13 was not passed? Would it go up or down? Why?

I'm very curious. I'd appreciate any feedback I can get regarding this topic. I'm actually gathering information so I can write a research paper for my class. Thanks in advance for any help I can get!

[Zigner]

This is a legal forum, not a homework helpline.