Proposition 13 actually HELPS local governments in downturn…
With all the angst over property taxes in Chelan County, I had to share this editorial in Investor’s Business Daily titled Proposition 13 Surprise.
Taxes: Thirty years ago, Californians took to the ballot box to save their homes and put some brakes on the growth of government. Now, even the government is reaping the benefits.
It may not get much national notice, but a significant man-bites-dog story has emerged from the debris of California’s real estate bust. Cities and counties are finding that their assessment rolls actually are going up while house values are diving. - IBD
With the downturn in property values in California, you might expect that the tax revenues for local governments are being decimated as well. As it turns out, a benefit of proposition 13 turns out to be the discipline imposed by proposition 13 and the moderating effect is has on tax revenues. Who would have thought….
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