Posted on by Californiacontrarian

Proposition 13.5

Proposition 13 is well known to those who live in California, and undoubtedly less well known to those who live outside of California.
By way of explanation the following excerpts are from Wikipedia:
 
Proposition 13 (officially named the People’s Initiative to Limit Property Taxation) was an amendment of the Constitution of California enacted during 1978, by means of the initiative process. The initiative was approved by California voters on June 6, 1978. It was declared constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn, 505 U.S. 1 (1992). Proposition 13 is embodied in Article XIII A of the Constitution of the State of California.[1]
This proposition decreased property taxes by assessing property values at their 1975 value and restricted annual increases of assessed value of real property to an inflation factor, not to exceed 2% per year. It also prohibited reassessment of a new base year value except for in cases of (a) change in ownership, or (b) completion of new construction.
What transpired back in the late 1970s that was the impetus for Proposition 13 being placed on the ballot?

One explanation is that older Californians with fixed incomes had increasing difficulty paying property taxes, which were rising as a result of California’s population growth, increasing housing demand, and inflation. Due to severe inflation during the 1970s, reassessments of residential property increased property taxes so much, that some retired people could no longer afford to remain in homes they had purchased long before. An academic study found support for this explanation, reporting that older voters, homeowners, and voters expecting a tax increase were more likely to vote for Proposition 13.[9]

Today in other states rising property taxes are becoming an increasingly difficult issue (for example, in Illinois) especially for seniors and others who are on a fixed income, and there is nothing that these individuals can really do about it. Luckily property owners in California are protected from this curse because of Proposition 13.
Those of us who happen to be in the housing market have seen the value of our homes rise, while our monthly payments have remained essentially the same other than a small increase in our property taxes each year. Those on a fixed income who own their home can plan their monthly expenses and can anticipate staying in their home . . . but what about those that do not own their place of residence? What about renters? As best I can tell there is no law against owners raising the monthly rent, and again as best as I can tell there is no limit on how much they can raise the monthly payment in their rental unit (1%,5%,10%,etc.) In the newspaper there was an article that had to do with the gentrification of older neighborhoods in San Diego, and the consequent rising rents in these neighborhoods.
One 68 year old gentleman, let’s call him Mr. V, who has lived in the older, now gentrifying, neighborhood for 25 years saw his rent go from $850 to $1275 over the last four years. He is justifiably concerned that he will be forced out of his apartment. To me this sounds like the 1970s all over again, but this time with renters. If it was not deemed to be right to force people out of their homes because of increasing taxes in the 1970s, it is right today to force people out of their rentals because of exorbitantly increased rents  in gentrifying neighborhoods?
Now here I am not talking about rent control, but am talking about  a proposition 13 for certain renters – let’s call it Proposition 13.5. I would propose that if someone had lived in an apartment for a certain number of years, perhaps five, ten, or fifteen years, then their rent increases would be limited to a 1% yearly increase until they moved out. (Similar to the 1%-2% annual increase in property taxes with the real Proposition 13.) This proposition 13.5 would probably be limited to certain groups on fixed incomes, and there would have to be strict rules and penalties for cheating. If Proposition 13 saved the day for homeowners in the 70s, isn’t it about time to save the day for certain renters with Proposition 13.5.
I realize that there are those of you who are wondering why this topic on Memorial Day.
Now for the rest of the story: The V in Mr. V. stands for Veteran, and Vietnam for he is a veteran and he served in Vietnam. What better way to honor Mr. V. and others like him on this Memorial Day than by considering and perhaps advocating for Proposition 13.5?

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