Bill Text: CA SR41 | 2013-2014 | Regular Session | Introduced

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Bill Title: Relative to the 36th anniversary of Proposition 13.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-06-11 - Failed passage in committee. (Ayes 2. Noes 5. Page 3838.) Reconsideration granted. (Ayes 7. Noes 0. Page 3839.) [SR41 Detail]

Download: California-2013-SR41-Introduced.html

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BILL NUMBER: SR 41	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Morrell

                        MAY 7, 2014

   Relative to the 36th anniversary of Proposition 13.


	LEGISLATIVE COUNSEL'S DIGEST
             HOUSE OR SENATE RESOLUTIONS DO NOT CONTAIN A DIGEST



   WHEREAS, On June 6, 1978, Proposition 13, officially titled the
"People's Initiative to Limit Property Taxation," was overwhelmingly
approved by California's voters, reducing property tax rates on
homes, businesses, and farms, and capping the rate of increase in the
future; and
   WHEREAS, Prior to the adoption of Proposition 13, California's
raging inflation had sent property tax bills in California soaring so
high that many families had to sell their homes because they could
not afford to pay their taxes; and
   WHEREAS, Prior to the adoption of Proposition 13, small business
owners facing fast increasing property taxes were forced to lay off
their employees or close their businesses if property tax increases
made their businesses unprofitable; and
   WHEREAS, Prior to the adoption of Proposition 13, renters saw
their rents increase when landlords saw their property taxes increase
at a rapid rate; and
   WHEREAS, With the passage of Proposition 13, taxpayers, for the
first time, were provided a measure of certainty with respect to
their property taxes; and
   WHEREAS, In the 35 years following the passage of Proposition 13,
the average homeowner and the average small business have saved tens
of thousands of dollars annually in property tax payments, money that
was put back into the economy to create jobs and foster economic
development; and
   WHEREAS, Since the passage of Proposition 13, proposed
alternatives to Proposition 13 would have had a variety of unwelcome
effects, including substantial tax increases for low-income and
elderly homeowners; and
   WHEREAS, Increased property taxes would be a disincentive for
first-time homebuyers and stand as a barrier to growth of our housing
market; and
   WHEREAS, Proposition 13 remains just as popular with voters today
as it was when it was approved, with numerous recent surveys citing
over 60 percent support; and
   WHEREAS, Proposed alternatives to Proposition 13 that would
increase property taxes on California businesses would also affect
the ability of employers to hire or retain California employees; and
   WHEREAS, Proposed alternatives to Proposition 13 would also
negatively affect renters who would see their rents increased if
their landlords experienced property tax increases; and
   WHEREAS, Since the passage of Proposition 13, voters have
rejected, by wide margins, changes that would have businesses pay
property taxes at a higher rate than those imposed upon residential
owners, as evidenced by the defeat of Proposition 167 in 1992; and
   WHEREAS, The volatility of income and sales tax revenue to the
state and local governments is a major flaw in California's tax
system; however, Proposition 13 has rendered California's property
taxes a stable and predictable source of public revenue even during
economic downturns and has provided a major benefit to local
governments in California; and
   WHEREAS, Friday, June 6, 2014, marks the 36th year following the
voters' approval of Proposition 13; now, therefore, be it
   Resolved by the Senate of the State of California, That the
Senate, in recognition of the impact Proposition 13 has had on the
State of California, formally commemorates June 6, 2014, as the 36th
anniversary date of Proposition 13; and be it further
   Resolved, That the Senate reaffirms its support for Proposition 13
and the benefit that it provides to individual homeowners and to the
state's overall economy; and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the Governor of the State of California, and to the
author for appropriate distribution.