Proposition 13 – Many things in life are movable, such as planes, trains and automobiles, to quote a movie title from years past. Or personal items such as TV’s, golf clubs or a suit case, can all be moved from here to there, down the street or even across state lines. But when it comes to moving real estate a stark reality is immediately apparent: real estate is just not movable and the politicians are keenly aware of this fact. California proposition 13
As such, the political powers have always treated real estate as a target of taxation to fund general government services, special government needs or a politician’s pet project. Since real estate is not movable and can’t be transferred to cities or states where taxes might be lower, owners of real estate have historically been the target of high property taxes. They had simply been subject to whatever tax rate was imposed upon them.
By the mid 1980’s property taxes had increased so dramatically that many older homeowners who had owned their properties for many years could no longer afford to pay the property taxes that were expected by the tax authority. Many were on fixed incomes, pensions or were only receiving social security. Their income had not increased as fast as or in proportion to the increase in property tax rates. There were a lot of people who were property rich but cash poor. California proposition 13
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