California schools suffering as Proposition 13 tax cap breeds fiscal chaos
By Michael B. Marois and James Nash/Bloomberg
Three decades after Californians voted to limit their property taxes and helped start a national revolt with Proposition 13, some consequences are still emerging. The average California real-estate tax rate is 60 percent lower than when the law passed in 1978, according to the Board of Equalization, the state’s tax administrator. The most populous U.S. state ranks 28th nationally in combined state and local property-tax collections per person in a 2011 study by the Washington-based Tax Foundation. Yet the measure that inspired tax-limiting laws in New York and New Jersey is also blamed for California’s perennial budget crises, the proliferation of strip malls and auto dealerships, a decline in the state’s once top-10 ranking for spending on students and unequal tax bills among neighbors. (more...)