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Proposition 13 has something for everybody.
Homeowners benefit because Proposition 13 makes property taxes predictable and stable so homeowners can budget for taxes and remain in their homes.
Renters benefit because Proposition 13 makes property taxes predictable and stable for owners of residential rental property, and this reduces upward pressure on rent increases. Additionally, Proposition 13 increases the likelihood that renters, too, will be able to experience the American Dream of home ownership.
Business owners, especially small business owners, benefit because Proposition 13 makes property taxes predictable for businesses, and it helps owners budget and invest in growing their business. This helps create jobs and improves the economy.
Local government and schools benefit because Proposition 13 provides a reliable, stable and growing revenue source. Even when real property values drop, property tax revenues continue to grow.
Neighborhoods benefit because Proposition 13 stabilizes neighborhoods as residents are no longer driven out by unaffordable tax increases. (Keeping neighborhoods intact was one of the reasons cited by the U.S. Supreme Court in its 1992 decision upholding Proposition 13.)
All taxpayers benefit because Proposition 13 guarantees their right to vote on new local taxes, and it requires a two-thirds vote of the Legislature to increase state taxes.
For more information about Proposition 13, please click here to go to FAQs.