Senate ResolutionNo. 41

Introduced by Senator Morrell

May 7, 2014

Senate Resolution No. 41—Relative to the 36th anniversary of Proposition 13.

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

14WHEREAS, Prior to the adoption of Proposition 13, renters
15saw their rents increase when landlords saw their property taxes
16increase at a rapid rate; and

17WHEREAS, With the passage of Proposition 13, taxpayers, for
18the first time, were provided a measure of certainty with respect
19to their property taxes; and

20WHEREAS, In the 35 years following the passage of Proposition
2113, the average homeowner and the average small business have
22saved tens of thousands of dollars annually in property tax
23payments, money that was put back into the economy to create
24jobs and foster economic development; and

P2    1WHEREAS, Since the passage of Proposition 13, proposed
2alternatives to Proposition 13 would have had a variety of
3unwelcome effects, including substantial tax increases for
4low-income and elderly homeowners; and

5WHEREAS, Increased property taxes would be a disincentive
6for first-time homebuyers and stand as a barrier to growth of our
7housing market; and

8WHEREAS, Proposition 13 remains just as popular with voters
9today as it was when it was approved, with numerous recent
10surveys citing over 60 percent support; and

11WHEREAS, Proposed alternatives to Proposition 13 that would
12increase property taxes on California businesses would also affect
13the ability of employers to hire or retain California employees;

15WHEREAS, Proposed alternatives to Proposition 13 would also
16negatively affect renters who would see their rents increased if
17their landlords experienced property tax increases; and

18WHEREAS, Since the passage of Proposition 13, voters have
19rejected, by wide margins, changes that would have businesses
20pay property taxes at a higher rate than those imposed upon
21residential owners, as evidenced by the defeat of Proposition 167
22in 1992; and

23WHEREAS, The volatility of income and sales tax revenue to
24the state and local governments is a major flaw in California’s tax
25system; however, Proposition 13 has rendered California’s property
26taxes a stable and predictable source of public revenue even during
27economic downturns and has provided a major benefit to local
28governments in California; and

29WHEREAS, Friday, June 6, 2014, marks the 36th year following
30the voters’ approval of Proposition 13; now, therefore, be it

31Resolved by the Senate of the State of California, That the
32Senate, in recognition of the impact Proposition 13 has had on the
33State of California, formally commemorates June 6, 2014, as the
3436th anniversary date of Proposition 13; and be it further

35Resolved, That the Senate reaffirms its support for Proposition
3613 and the benefit that it provides to individual homeowners and
37to the state’s overall economy; and be it further

P3    1Resolved, That the Secretary of the Senate transmit copies of
2this resolution to the Governor of the State of California, and to
3the author for appropriate distribution.