California Legislature—2013–14 Regular Session

Assembly Concurrent ResolutionNo. 60


Introduced by Assembly Member Morrell

May 14, 2013


Assembly Concurrent Resolution No. 60—Relative to the 35th anniversary of Proposition 13.

LEGISLATIVE COUNSEL’S DIGEST

ACR 60, as introduced, Morrell. The 35th anniversary of the enactment of Proposition 13.

This measure would commemorate June 6, 2013, as the 35th anniversary of the approval of Proposition 13 by California voters.

Fiscal committee: no.

P1    1WHEREAS, On June 6, 1978, Proposition 13, officially titled
2the “People’s Initiative to Limit Property Taxation,” was
3overwhelmingly approved by California’s voters, reducing property
4tax rates on homes, businesses, and farms, and capping the rate of
5increase in the future; and

6WHEREAS, Prior to the adoption of Proposition 13, California’s
7raging inflation had sent property tax bills in California soaring
8so high that many families had to sell their homes because they
9could not afford to pay their taxes; and

10WHEREAS, Prior to the adoption of Proposition 13, small
11business owners facing fast increasing property taxes were forced
12to lay off their employees or close their businesses if property tax
13increases made their businesses unprofitable; and

P2    1WHEREAS, Prior to the adoption of Proposition 13, renters
2saw their rents increase when landlords saw their property taxes
3increase at a rapid rate; and

4WHEREAS, With the passage of Proposition 13, taxpayers, for
5the first time, were provided a measure of certainty with respect
6to their property taxes; and

7WHEREAS, In the 35 years following the passage of Proposition
813, the average homeowner and the average small business have
9saved tens of thousands of dollars annually in property tax
10payments, money that was put back into the economy to create
11jobs and foster economic development; and

12WHEREAS, Since the passage of Proposition 13, proposed
13alternatives to Proposition 13 would have had a variety of
14unwelcome effects, including substantial tax increases for
15low-income and elderly homeowners; and

16WHEREAS, Increased property taxes would be a disincentive
17for first-time homebuyers and stand as a barrier to growth of our
18housing market; and

19WHEREAS, Proposition 13 remains just as popular with voters
20today as it was when it was approved, with numerous recent
21surveys citing over 60 percent support; and

22WHEREAS, Proposed alternatives to Proposition 13 that would
23increase property taxes on California businesses would also affect
24the ability of employers to hire or retain California employees;
25and

26WHEREAS, Proposed alternatives to Proposition 13 would also
27negatively affect renters who would see their rents increased if
28their landlords experienced property tax increases; and

29WHEREAS, Since the passage of Proposition 13, voters have
30rejected, by wide margins, changes that would have businesses
31pay property taxes at a higher rate than those imposed upon
32residential owners, as evidenced by the defeat of Proposition 167
33in 1992; and

34WHEREAS, The volatility of income and sales tax revenue to
35the state and local governments is a major flaw in California’s tax
36system; however, Proposition 13 has rendered California’s property
37taxes a stable and predictable source of public revenue even during
38economic downturns and has provided a major benefit to local
39governments in California; and

P3    1WHEREAS, Thursday, June 6, 2013, marks the 35th year
2following the voters’ approval of Proposition 13; now, therefore,
3be it

4Resolved by the Assembly of the State of California, the Senate
5thereof concurring,
That the Legislature, in recognition of the
6impact Proposition 13 has had on the State of California, formally
7commemorates June 6, 2013, as the 35th anniversary date of
8Proposition 13; and be it further

9Resolved, That the Legislature reaffirms its support for
10Proposition 13 and the benefit that it provides to individual
11homeowners and to the state’s overall economy; and be it further

12Resolved, That the Chief Clerk of the Assembly transmit copies
13of this resolution to the Governor of the State of California, and
14to the author for appropriate distribution.



O

    99