Proposition 13-California

A new study from USC concludes that the benefits of California's Prop. 13, which froze property tax rates, are unequally distributed among generations of homebuyers.

Proposition 13 has long been associated with California's budget woes and "fiscalization of land use" policies. Meant to apply primarily to residential property, commercial property owners have benefited more. 'Split role' could correct the problem.

Cash-strapped towns in California are resorting to what opponents dub an "accident tax". At-fault, out-of-town drivers involved in a crash are sent a bill for the public services sent to clean-up the incident. Local motorists are spared.

Long considered the source of California's fiscal and land use woes, Proposition 13, passed by voters in 1978, limits increases in property tax. However, it may prove to be an 'economic stabilizer' during the current housing slump.