The question of whether California should abolish property taxes almost seems absurd.
The question of whether California should abolish property taxes almost seems absurd. Our state, like all other states, has had some form of property tax since its founding. However, it would be foolish to discount a growing national debate questioning the very existence of annual taxes on real estate.
This is especially true now that taxpayers are being targeted by progressives with “wealth taxes.” People may not realize that property taxes are, in fact, a form of wealth tax. National media stories appear almost daily about taxpayers’ anger over ever increasing levies on their homes. According to real estate journalist, Allaire Conte, writing in RealEstate.com, “The simmering frustration of 2024 and 2025 has boiled over into a full-scale property tax revolt in 2026, with no fewer than 13 states actively weighing proposals to eliminate property taxes in some form.” For example, in Florida, Gov. Ron DeSantis has called property taxes an “oppressive and ineffective form of taxation” citing the most common complaint from homeowners that they shouldn’t have to pay rent to the government. Georgia has targeted 2032 for complete elimination and North Dakota has moved the most aggressively because it has large state oil tax revenues that allows it to finance a generous homeowners tax credit.a financial transaction like receiving a paycheck, dividend, realizing a capital gain or a sales transaction. The incidence is the mere possession of one form of wealth – real estate – on a single day – called the lien date – of the calendar year: In California, the lien date is January 1Despite the national angst over property taxes, few political leaders or citizens are advocating their immediate elimination. Even in conservative North Dakota, a 2024 initiative measure to abolish property taxes was overwhelmingly rejected by 64% of voters. Rather, the strategy has been to move incrementally, probably in recognition of the fact that property taxes remain the primary tool for financing local governments. According to the Tax Foundation, “In fiscal year 2023, property taxes comprised 28.9 percent of total state and local tax collections in the United States, more than any other source of tax revenue.” But many of the benefits from property taxes identified by the Tax Foundation aren’t borne out in the real world, especially in California. Again, Allaire Conte writing in Realestate.com notes that the current movement to restrict or eliminate property taxes has historical precedence: “The backlash is striking, but not without precedent. The inflation shock of the 1970s helped fuel California’s Proposition 13, the landmark 1978 law that capped property tax rates and limited annual assessment increases for long-tenured homeowners.” In fact, Prop. 13 provides a model for other states seeking to limit property taxes, even if they are unwilling to enact total abolition. Proposition 13 curbs property taxes by restricting the maximum rate and, more important, by limiting increases in assessed valuation . While it is true that, under Prop. 13, a property’s current value can exceed its taxable value over a span of just a few years, that difference disappears when the property changes hands.Rafael Perez: Adam Miller promises to bring back sensible solutions to Los AngelesProp. 13 treats equally property owners who purchase property of similar value at the same time. Unlike property taxes in other states, it provides certainty in future tax liability and protects homeowners from the vagaries of the real estate market — something over which they have no control. Ironically, Prop. 13 also protects local governments. Even the California Legislative Analyst has noted that Prop. 13 has reduced revenue volatility – a major problem in California with other kinds of taxes – and produced resiliency against real estate market crashes. The only problem associated with Prop. 13 is the extent to which it has been weakened by special interests and a hostile judiciary pursuing an aggressive agenda of higher taxes. But these tax-and-spend interests should beware. They discounted the odds of Prop. 13 passing in 1978 and if they continue to push taxpayers too far, more radical tax cutting proposals – including property tax elimination – could quickly become popular among California voters.What to know about the planned Saturday, March 28 ‘No Kings’ protests in Southern CaliforniaShohei Ohtani placed on IL, will miss remainder of Angels’ seasonMayor Bass announces initiative to install 60,000 solar-powered street lights citywideIn the California governor’s race, two Republicans land at top of the state Democratic Party’s poll
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