Chris Reed - San Diego Union
According to the newsrooms and editorial boards of the L.A. Times and the Sacramento Bee -- heck, even according to the Bee's cartoonist
-- Proposition 13 is the devil. The 1978 voter initiative limiting
increases in property taxes has so reduced revenue that it has hollowed
out vitally needed public services and played a key role in the state's
descent into utter dysfunction, blah blah blah blah.
The Times and the Bee folks aren't just saying this as yet another
rhetorical salvo in their never-ending push for higher taxes, right?
Surely they have hard proof on their side, right?
Wrong. Dead wrong. Utterly wrong. Mind-bendingly wrong. So wrong as to be downright mendacious.
Remember, Prop. 13 is not a hard cap of property taxes. Levies are
adjusted to current market value when property changes hands. And that
happens all the time.
According to the latest info from the Board of Equalization -- look at it here -- total property taxes collected in 2006-07 were $43.16 billion.
The oldest property tax stats I could find were for 1980-81, from caltax.org. That year, property tax revenue was $6.36 billion.
So since shortly after Prop. 13's adoption, property tax revenue
increased by 579 percent. That is not a typo. It went up 579 percent.
During the same span, population went from 24 million to 38 milion -- an increase of 58 percent.
As for inflation, as of January 1981, the rough midpoint of the
1980-81 fiscal year, the Consumer Price Index -- which gauges inflation
-- was 88. As of January 2007, it was 202.4. That is a 133 percent
increase.
So property tax revenue has increased by more than triple the
combined rate of inflation and population growth -- 579 percent versus
191 percent.
ADDED PARAGRAPH AT 9 P.M.: Commenter Robert Greer
says this is the wrong way to calculate this -- that the inflation rate
should be multiplied by the population growth rate, not added together.
That would yield, he says, a 268 percent comparison point for combined
inflation and population growth. But even by his reckoning, property
tax revenue still has gone up by more than double the combined rate of
inflation and population growth. END ADD.
Oh, yeah, Prop. 13 is the devil. Prop. 13 is our biggest problem --
not the state's inability to live within its means. Why? Because we say
it. Who cares what the numbers show? Numbers are for nerds.
All right, let's bring in some "context" -- the favorite claim of
those who dismiss plain facts is that the numbers are not being
discussed in "context." According to LAO's wonderful searchable budget
database, in 1980-1981, the total of all general and special fund
revenue for the state of California was $22.1 billion. For 2006-07, it
was $120.7 billion. Here is an Excel spreadsheet documenting this. That is an increase of 555 percent.
You follow? PROPERTY TAX REVENUE WENT UP FASTER THAN OTHER SOURCES OF REVENUE!
If this doesn't bury the Prop.13-is-the-devil lie, nothing will.
But it won't. The L.A. Times and Sac Bee are committed to this
narrative, come hell or high water. The former is what taxpayers face
if they get their way.
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