California’s Proposition 13 explained
SAN DIEGO (KUSI) – Proposition 13, the historic tax measure in 1978 that cut property taxes and effectively stripped schools and local governments of significant tax revenue, is back and it’s on the March Primary ballot.
However, it does not, in any way, change the original Prop 13.
Richard Rider is Chairman of the San Diego Tax Fighters, and he says using the Prop 13 designation is misleading.
That’s because school districts must pass local school bond issues to generate the matching funds required to get any part of this $15 billion state bond issue. And local school bonds are repaid with property taxes, so approving this bond measure is approving a property tax increase.
There’s also a provision in the measure to raise the cap or limit of the amount a local school district can borrow. In fact it’s nearly double.
This spending and borrowing scenario, according to Richard Rider, can only work if we never have another recession in the next 35 years, when the bonds will be repaid.