Californians Could Vote to Expand Prop 13 Property Tax Breaks in November

A biting opinion piece asks why Californians would want to worsen the effects of Proposition 13 by voting yes on Proposition 5.

2 minute read

October 19, 2018, 12:00 PM PDT

By James Brasuell @CasualBrasuell


David Dayen writes on the impending ballot measure facing Californians that could extend the property tax breaks made famous by Proposition 13.

Proposition 5, as the new measure is called on the November ballot, was designed by the real estate industry as an incentive to convince aging residents to move to new homes—and take the property tax rates limited by decades of Proposition 13 with them when they go, thus waking up previously dormant parts of the market.

Dayen's question, however, is whether the state's residents have learned anything from Proposition 13, and proposition 5 seems to indicate that they haven't.

California began an experiment 40 years ago called Proposition 13. The 1978 voter-passed initiative rolled back property tax rates and then capped annual increases at 2% a year. The question then became: Can a modern state provide infrastructure, education, healthcare and fight poverty while simultaneously starving the state coffers?

The answer was no. Property tax revenue dropped nearly 60%. K-12 education spending fell to some of the lowest levels in the nation. The state master plan for first-class higher education and infrastructure was left in tatters. The state has become so dependent on income taxes that it suffers from a volatile boom-and-bust budget cycle.

According to Dayen, Proposition 5 will make all of Proposition 13's negative effects worse. Not only will it continue to reduce revenues to state and local finds, but Dayen argues Proposition will actually raise housing prices as well.

Tuesday, October 16, 2018 in Los Angeles Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight