Help CalTax Protect Proposition 13
CalTax is fighting to protect Proposition 13 from two major attacks:
On the November 2020 Ballot. An initiative on the November ballot would eliminate Proposition 13 protections for many properties in California, resulting in higher rent for countless small businesses, and higher prices for just about everything people buy and use, including groceries, fuel, utilities, day care and health care. Click here to read more about why CalTax opposes this harmful tax increase.
In the State Capitol. Two measures under consideration by state lawmakers would pave the way for higher taxes on all types of property, leading to higher costs for homeowners, renters and businesses. These proposals – Assembly Constitutional Amendment 1 and Senate Constitutional Amendment 5 – would reduce the vote for passing local taxes imposed on parcels of property in addition to the traditional tax that is based on each property’s value. Under Proposition 13, these taxes can’t be imposed unless approved by at least two-thirds of the voters in the area that would be taxed. ACA 1 and SCA 5 would reduce the vote threshold, to make it easier to increase taxes.
As the state’s oldest and largest association representing taxpayers, CalTax is working hard to defeat these tax increases, but we can’t do it alone. To join the fight, please click here for information on how you can support the CalTax Issues Committee.
Proposition 13 at a Glance
Proposition 13 was approved overwhelmingly by California voters in 1978 to solve a property tax crisis. Proposition 13 ended runaway taxes by creating uniform rules that protect property owners from uncertainty while still providing stable and growing revenue for local government.
- Sets the maximum tax rate at 1 percent of a property’s market value at the time of acquisition, with an allowance that the rate may exceed 1 percent to repay voter-approved debt, including local school bonds.
- Adjusts taxable values for inflation, but limits the annual increase to no more than 2 percent per year.
- Provides that property is reassessed when there is new construction or a change in ownership.
- Requires a vote of at least two-thirds of the Legislature for approval of new state taxes, and support of at least two-thirds of local voters for approval of local taxes earmarked for special purposes.