Proposition 13: Limits on Property Tax Assessment

From Mobilize the Immigrant Vote

What is Proposition 13 - Limits on Property Tax Assessment?

Under current law, buildings retrofitted for earthquake safety are exempt from tax reassessments. However, the exemption from reassessment expires after 15 years for unreinforced masonry buildings. Prop 13 allows the exemption from reassessment to continue indefinitely. If Proposition 13 is approved by the voters, it will prohibit tax assessors from reassessing the value of these properties.

MIV Analysis

The California Chamber of Commerce and Assemblyman Roy Ashburn (R-Bakersfield) argue that Prop 13 closes a loophole in existing law, allowing the tax exemption for construction of all buildings retrofitted for earthquakes. They say it eliminates a disincentive for property owners to upgrade certain types of buildings in order to improve earthquake safety.

While Prop 13 may provide some incentive for well-off developers to provide seismic upgrades to the buildings they own, it will also reduce local property tax revenues at a time when California finds itself in a $20 billion deficit. Public services for immigrants and low-income families including benefits and educational programs will be reduced due to the moderate loss of tax revenue from Prop 13. It is the wrong time to provide developers with further property tax exemptions when basic programs such as food stamps, Medi-Cal, and minimal income for disabled and senior immigrants are at stake.

Key Supporters & Opponents

Proposition 13 is supported by the California Chamber of Commerce and Assemblyman Roy Ashburn (R-Bakersfield). While no group opposed Prop 13 at the time of filing, some organizations including Services, Immigrant Rights and Education Network (SIREN) in San Jose oppose Prop 13.

Recommended Vote

NO