Think Proposition 13 isn’t helping you? Guess again.
How high would your property tax be without Proposition 13? To help you figure that out, the Howard Jarvis Taxpayers Association has launched an easy-to-use online tax calculator called “The Guessing Game.” It will tell you what your property tax would likely be today if Proposition 13 had never passed.
Before Proposition 13, the average tax rate on property in California was 2.67 percent of assessed value, and assessed value was approximately the same as market value. But rising real estate prices during the inflation-plagued 1970s created a disastrous situation for many homeowners. They could no longer afford to pay the taxes on their homes, and many people — especially those on fixed incomes — were forced to sell.
Proposition 13 capped the assessed value of property at the purchase price plus an increase of no more than 2 percent per year. The tax rate was cut to 1 percent.
To see how much you are benefiting from Proposition 13 right now, click here.