Election Day in California is March 3, 2020, and the state’s voters will be asked to vote on Proposition 13.
This may be confusing, since Proposition 13 was passed in 1978, and installed a cap on property taxes throughout the state. The current proposition on the ballot has nothing to do with that.
Today, we’re giving you a summary of what this new Proposition 13 entails and where we stand on how you should vote.
Proposition 13 on the March 3 Ballot
This proposition seeks approval for a $15-billion state bond that would be spent on education facilities serving pre-kindergarten students through the public California university system. It’s the largest state bond that has ever been requested for education.
While it is not related to the original Proposition 13 that protects your property taxes against dramatic increases, both proponents and opponents of this proposition are pointing to property taxes as reasons that it should be supported or rejected.
The new Proposition 13 would provide:
- $9 billion in bond money for K-12 schools
- $2 billion in bond money for community colleges
- $2 billion in bond money for state universities
- $2 billion in bond money for the University of California
Supporters of this Proposition 13 point out that the 1978 Proposition 13, while good for homeowners, stripped the local school districts of much-needed tax revenue that ensured their funding, forcing the state’s budget to support the schools.
Opponents of this Proposition 13 point out that even if this bond bill doesn’t raise property taxes directly, there’s no way that the California taxpayer won’t suffer in some way from the large price tag. Local communities, they worry, may ultimately have to foot the extra bills, and the only way to access additional revenue would be through higher taxes.
Our Position on Proposition 13
At Select 1 Realty, we recognize the value that a strong education and school system brings to a community. Schools are public facilities.
However, we believe that owning property in California is already prohibitively expensive for many people. Any extra spending that would even hint at higher property taxes is bad for real estate investors, property owners, and ultimately tenants as well. The spirit and protections included in the 1978 Proposition 13 need to be maintained, and the interests of homeowners must be a priority. If the state and local schools need more money for education, safety, and modernization, we need to be more creative and innovative about funding them.
We’d be happy to talk to you more about this bill and our thoughts about it. Please contact us at Select 1 Realty for more information.