California still loves its Prop 13 Property Tax Freeze--Should Wisconsin Follow Their Lead?

In June of 1978, California passed Prop 13, a fierce proprty tax-cutting initiative. In a survey in 1998, Neil Peirce (www.metroforum.org/articles/peirce_071998.html) found that only 20% of California residents strongly opposed Prop 13 and the vast majority would vote it in again in a heartbeat. In my recent visit to California, I can verify that Prop 13 is very popular.

In summary, Prop 13 caps property tax at 1% of a home's assessed value. It holds any increases to 2% a year. It says that property cannot be reassessed till its sold.

Thus the home we stayed in, the rambler that has a current market value of $750,000 was assessed at 200,000 and the property taxes on it were $3200 or roughtly the equilavent of what a homeowner in Evansville with a $120,000 home would pay. Once a home is sold, everything changes. Then the home is assessed at full market value. Thus two homes can and do exist side by side with vastly different valuations. The prop 13 proponents say, however, that the 1% limitation means that yes the valuations are different, but still both homeowners have certainty and both taxes are reasonable.

The result of Prop 13 has been to shift the responsibility of school funding to the State. The State has been responsible for the funding mandates for education as well as immigration and it is just that the state should not force seniors and the middle class out of their homes to pay for their lack of fiscal and immigration control management.

The opposing view states that California has created two classes of citizens, the older, Anglo and middle class enjoy a near-tax free holiday while the recent buyers, younger people and minorities, pay taxes several times as high. The opossing view is that the taxes are different but still low and it is in the benefit of all homeowners to have tax certainty and to put the uncertainty on the the State.

One of the consequences of the process of the past 20 years has been a decline in the academic performance of California schools, and a move by the affluent to place their children in private schools. In some elementary schools, there are as many as 30 per classroom. Not a size effective to teach.

Homeowners charge that this decline is not due to Prop 13, but to the administration of the schools in California. They state that California has managed its schools like they managed their electric utilities and that it is wrong to blame Prop 13 for the situation in the schools.

What do you think of a Prop 13 for Wisconsin? The comment line is open.