BILL ANALYSIS �
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THIRD READING
Bill No: SR 41
Author: Morrell (R)
Amended: As introduced
Vote: Majority
SUBJECT : Relative to the 36th anniversary of Proposition 13
SOURCE : Author
DIGEST : This resolution commemorates the 36th anniversary of
Proposition 13 (Prop 13).
ANALYSIS : This resolution makes the following legislative
findings:
1.On June 6, 1978, Prop 13, officially titled the "People's
Initiative to Limit Property Taxation," was overwhelmingly
approved by California's voters, reducing property tax rates
on homes, businesses, and farms, and capping the rate of
increase in the future.
2.Prior to the adoption of Prop 13, California's raging
inflation had sent property tax bills in California soaring so
high that many families had to sell their homes because they
could not afford to pay their taxes; and small business owners
facing fast increasing property taxes were forced to lay off
their employees or close their businesses if property tax
increases made their businesses unprofitable.
3.Prior to the adoption of Prop 13, renters saw their rents
increase when landlords saw their property taxes increase at a
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rapid rate.
4.With the passage of Prop 13, taxpayers, for the first time,
were provided a measure of certainty with respect to their
property taxes.
5.In the 35 years following the passage of Prop 13, the average
homeowner and the average small business have saved tens of
thousands of dollars annually in property tax payments, money
that was put back into the economy to create jobs and foster
economic development.
6.The volatility of income and sales tax revenue to the state
and local governments is a major flaw in California's tax
system; however, Prop 13 has rendered California's property
taxes a stable and predictable source of public revenue even
during economic downturns and has provided a major benefit to
local governments in California.
This resolution commemorates Friday, June 6, 2014, the 36th year
following the voters' approval of Prop 13.
Similar Legislation
SCR 25 (Wyland, 2013) commemorates the 35th anniversary of Prop
13, is in Senate Governance and Finance Committee.
ACR 60 (Morrell, 2013) commemorates the 35th anniversary of Prop
13, is in Assembly Revenue and Taxation Committee.
FISCAL EFFECT : Fiscal Com.: No
AB:k 5/22/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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