‘Challenge to Prop. 13’

In response to your editorial “Challenge to Prop. 13,” Jan. 22:

The U.S. was founded upon three basic principles. The right to speak freely, the right to worship as you please, and the right to own property that you earn.

Prior to July 1, 1978, there was some doubt whether the ownership of property, especially a home, was a right or a privilege from government. Under an antiquated, mismanaged, and politically driven ad valorem system (of assessments), homes in California became prey for government confiscatory taxation. Annually, the boards of supervisors in most counties would raise tax rates in order to fund the “bloating” budgets. Then, once every two or three years, the assessor would raise home assessments; homeowners saw annual tax increases from 10% to 20% in the early 1970s.

The tax revolt really culminated between 1974 and 1977 when homeowners in developing areas began to experience 50% tax increases every two years. The homeowners became fed up with this precarious taxing climate, and qualified Proposition 13 for the June, 1978, ballot.

We are now in the second phase of that 1970s tax revolt. The homeowners, purchasing homes in the 1980s see government abuse in the property tax levies. Proposition 13 specifically states in its initial clause, Section 1a, “the maximum amount of ad valorem tax on real property shall not exceed 1 percent.” With the inflation in the California real estate market running at up to 8 times the cost-price index since 1980, the Legislature and the State Board of Equalization have allowed this discrimination against 1980 era home buyers.

With property tax revenues increasing annually in most California counties by over 10% (Los Angeles County 11% in 1988), a windfall of post-Proposition 13 property taxes is being realized by most counties. And most of these millions of “new property tax” dollars are coming at the expense of recent home buyers.

The Times is correct that there seems to be inequity in some home buyers paying more than their neighbors within the same areas. But, Proposition 13 was written to allow government flexibility during inflationary (or recessionary) times. There is not a word in it that takes any local power away from government. People can raise their own taxes at any time for any purpose, by a vote.

No, Proposition 13 should not be changed. The politicians and The Times need to realize how it can work pragmatically within all types of economic conditions. And, the first cure for any so-called “inequity” should be a reduction of post-Proposition 13 homeowner taxes, and a responsible indexing system, based on the national CPI that would deal with increases.

A 25% to 40% reduction in taxes for home buyers since 1978 is in order. The reduction would be legal and morally correct.

ERNEST DYNDA

President

United Organizations of Taxpayers

Los Angeles