Political and Legal Responses to Proposition 13 in California
Abstract
The passage of Proposition 13, the Jarvis-Gann initiative, by a 2-to-1 margin was heralded by some as the cutting edge of a taxpayers' revolt that would pare California government and point a cost-cutting message to politicians across the nation. This study focuses on the political and legal responses of state government in the aftermath of Proposition 13. It is based on interviews with people who took part in legislative action implementing the constitutional amendment, as well as on an analysis of reports, legal documents, and newspaper accounts about key political and legal events occurring after the June 6, 1978 vote. Proposition 13 added Article XIII A to the California state constitution. In essence, it provides the following: taxes on real property are limited to 1 percent of 1975 market value, and no new property taxes may be imposed; market value may be increased from its 1975 value by up to 2 percent a year or when property is sold or is newly constructed; changes in state taxes require two-thirds approval in the legislature; and local "special taxes" may be imposed by two-thirds vote of "qualified electors." The major immediate effect of the amendment was to excise $7 billion from local governments, or almost a quarter of their total anticipated 1978-79 revenue. Many predicted economic chaos would result, and some sought relief from the courts, hoping that Proposition 13 would be declared unconstitutional. Many of its provisions were ambiguous or required statutory implementation. It remained for state officials in executive, legislative, and judicial positions to interpret the popular will and constitutional mandate and to take steps to deal with the impending governmental quandary. The report focuses mainly on the period immediately following the passage of Proposition 13 in June 1978. An epilogue, prepared as the text was being revised for publication, summarizes major related developments in 1979.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1980
- Accession Number
- ADA511800
Entities
People
- Albert J. Lipson
- Marvin Lavin
Organizations
- RAND Corporation