Is It Time to Rethink Prop. 13?

As property taxes roll into the state coffers this month, a number of civic activists, politicians and lobbyists are pushing for a ballot initiative next year that would substantially change Proposition 13 by making it easier for local governments to impose or raise non-property taxes.

Momentum has also built to return control of property tax allocations to local governments, allowing them to keep most of that revenue rather than have it disbursed by the state.

DIANE WEDNER asked a recent home buyer from Woodland Hills and a longtime homeowner from Toluca Lake whether it’s time to change Proposition 13, the 1978 state constitutional amendment that limited property taxes.

VALERIE PAGE / Woodland Hills resident; assistant food-service director at a hospital

I think it is time to change Proposition 13. As a new home buyer, my husband and I feel that we are paying an unfair share of property taxes, compared to homeowners who purchased prior to Prop. 13. They may own homes that have been assessed in value higher than mine, but my property tax bill is much higher than theirs. I also suspect that many people who own expensive, older homes are making a great deal more money than we are. The change in Prop. 13 that I would advocate would let property owners pay an equal share for the assessed values of their homes, whether they bought it prior to 1978 or after. If the homes are worth the same, the owners should shoulder an equal burden.

One of the more serious repercussions of Prop. 13 is that there has been a lack of funds available to local schools, which has resulted in a decrease in public education funding. The lack of property taxes has also affected many public services, including the health department, resulting in diminished funding for needy local residents, who must have access to affordable health care.

Although no one wants additional taxes, I would like to see local constituents have some control over which non-property taxes are raised. I would like to keep the money in our local communities for libraries, schools and hospitals. I would like us to have the power to vote to impose these taxes, just as we do with bond measures. A simple majority vote would be preferable to the two-thirds majority currently required to raise non-property taxes.

NATALIE BLOXHAM / Past president, Toluca Lake Chamber of Commerce; business owner

I was, and still am, in favor of Proposition 13, because the tax burden that I first faced when I purchased my [Toluca Lake] home in 1972 was tremendous. It was a big relief when that burden was lowered in 1978. My property taxes had been $3,000 a year, then they dropped to $600 a year, and now, even with Prop. 13, they’re at about $1,900 a year. Prop. 13 gave a tremendous break to everyone at the time and for many years after. Under Prop. 13, the property taxes remained at a reasonable rate. I believe that if people feel we don’t have enough fire protection or city services, they can vote for bond measures. You don’t have to impose these taxes on property owners. We all have a voice in how to pay for these services, whether you live in a home or an apartment.

Even new homeowners are benefiting from the restraint put on the city tax assessor by Prop. 13. He’s still going to raise the taxes, but at a lot slower pace. The young homeowner won’t have runaway taxes on top of what he’s already paying, which is a big enough burden.

I am opposed to skirting Prop. 13 with any kind of non-property tax initiative. That would just allow legislators to go ahead and unleash their desires onto the property owner, and taxes would be raised again. They call it non-property taxes, but a tax is a tax. It ends up, one way or the other, on your property tax bill.

Right now we’re in control; we can vote to pay for more libraries and fire services. I would prefer to maintain a two-thirds majority approval for a tax increase of any kind.

I totally support the idea of local municipalities retaining our property taxes that are collected for distribution. We should have control over how that money is spent. Only that piece of Prop. 13 should be amended. Any attempt to amend Prop. 13 should use separate initiatives: one for raising non-property taxes, which I would oppose, and one for retaining local power over our tax money, which I would vote for.