Prop. 13 has almost mythical powers against those who would assail it.

At your request: This week's California Commentary by Jon Coupal
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** California Commentary
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** Prop. 13 is still third rail of California politics
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By Jon Coupal

2020 was supposed to be the year – the year when Proposition 13’s enemies finally inflicted a near fatal wound on the iconic property tax reduction initiative adopted by voters more than 40 years ago. As of this writing it appears that they have come up short.

Since 1978, tax-and-spend interests – mostly public sector labor organizations – have chafed under Prop. 13’s one percent limit on the property tax rate and the two percent limit on annual increases in assessed valuation. But even the most recent Public Policy Institute of California poll revealed that at least 60 percent of Californians viewed Prop. 13 as “mostly a good thing.” That level of support for Prop. 13 is remarkable given California’s increasing embrace of other progressive policies. This is now a deep blue state with Democratic supermajorities in both houses of the legislature and conservative statewide office holders are nowhere to be found. To say this is no longer the California of Ronald Reagan is an understatement.

Knowing that Prop. 13 retained high levels of support, especially among homeowners fearful of being taxed out of their homes, progressives thought they could repeal Prop. 13 incrementally. So it made sense that they would first target those evil corporations like Chevron and Disney. (Who knew Mickey Mouse was so dangerous?)

But targeting what they believed were unpopular businesses was just one of their perceived paths to victory. They also projected that the 2020 general election would have much higher turnout than other elections because of the divisive presidential contest. Add to that a virtually endless supply of campaign cash and a complicit Attorney General who gave them a highly favorable ballot label that didn’t mention “tax increase,” and they assumed that the first step in taking down Prop. 13 was in the bag.

But a funny thing happened on the way to the polls. First, homeowners were rightfully concerned that a $12 billion property tax increase on businesses would translate into a higher cost of living. Moreover, homeowners were on to progressives’ long-term agenda of coming after them next. They took to heart Benjamin Franklin’s admonition that “we either hang together or hang separately” and so stood shoulder to shoulder with the business community against this assault.

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Jon Coupal is the President of the Howard Jarvis Taxpayers Association (HJTA). He is a recognized expert in California fiscal affairs and has argued numerous tax cases before the courts.
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