It’s an educational (and scary) exercise to consider what our property taxes would be if Prop 13 had NOT passed in 1978 — and no subsequent reforms in property taxes occurred (a fair assumption, given Democrat dominance of the state legislature since 1970).
Most people have forgotten the following aspect: “In 1977, the average property tax rate in California was **2.67 percent**. Proposition 13 fixed the rate at 1 percent of the purchase price [plus a 2% annual increase, or the COL, if less]. On top of the 1% is whatever additional rate is approved to cover voter-approved indebtedness, such as bonds. Although the additional rate varies around the state, it generally runs at about one-tenth of 1 percent, setting the overall Proposition 13 rate at 1.1 percent.” http://www.caltax.org/WhatProposition13Did.pdf — page 1
Actually most people today will find that this article’s “1.1%” property tax rate understates what is actually paid. Looking at my own property tax bill, my annual “1%” tax on our 1993 purchase is $4,526.13 in 2014. The other… Read More